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Vietnam: Imported scrap price rally continues on limited offers

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Melting Scrap
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21 Dec 2020, 19:09 IST
Vietnam: Imported scrap price rally continues on limited offers

Following a global price hike, global suppliers have increased their offers on strong demand and limited availability. Imported scrap offers in Vietnam have jumped by $40-50 on a weekly basis, SteelMint understands.

Bulk Japanese scrap export prices to Vietnam have increased significantly on a weekly basis. SteelMint's assessment for Japanese H2 stands at $460/t CFR Vietnam basis. However, limited deals were reported at these levels.

While assessment for USA origin bulk HMS 1&2 (80:20) now stands at $480/t CFR Vietnam level. There were unconfirmed reports of bulk US Shredded scrap deal while deals been concluded at $485/t levels, sources told SteelMint.

Vietnam's scrap imports from Japan up on tighter US supplies - Vietnam's scrap imports totalled 5.12 mn t in Jan-Nov'20 registering an 8% hike y-o-y during the same period last year. Despite a slight dip in imports in Nov' 20 which stood at 0.52 mn t as against 0.55 mn t in Oct'20, overall imports from Japan were up by 9% in Nov'20. The country's crude steel production registered 21.9 mn t in the 10M CY'20 as compared to 17 mn t in CPLY, as per WSA data.

Indonesian buyers continue their silence on disparity between offers and bid

Indonesia's imported scrap buyers continued their silent status last week due to the disparity between offer and bid price. Also, there are very few bookings available from the shipping lines to Indonesia, highlighted by a reliable source. Prices have reached their highest peak in the past two years, whereas Indonesia mills are simultaneously processing their BET (Import license) to the Ministry and wait for the approval. With keeping the trade time calculable as all the shipments should come to the discharge port area before the end of Jan with the *label security number (LS) in Dec to avoid customs clearance problems.

Recent offers:

  • HongKong origin PNS in 20 ft container: $410 - 420/t CFR Jakarta, rising by $30-40 on a weekly basis.

  • Busheling in 20 ft container: $420 - 430/t CFR Jakarta.

  • Shredded in 20 ft container: $405 - 410/t CFR Jakarta.

Indonesia's new policy restricts scrap imports- An emerging ferrous scrap market, witnessing a new regulation impact it's ferrous scrap imports, as the country has observed a drop in its scrap imports by 11% m-o-m in Oct'20. The country imported 0.16 mn t in Oct'20 as compared to 0.18 mn t a month ago, as per data maintained with SteelMint. USA remained largest supplier and stood at 0.04 mn t in Oct'20, followed by Hongkong and United Kingdom.

Outlook - Sources expect prices to remain elevated considering restocking ahead of winters.

*=Correction (LS has been corrected to label security no. which was earlier mentioned as license no.)

 

21 Dec 2020, 19:09 IST

 

 

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