Vietnam: Imported scrap prices correct marginally on lower bids

Vietnam, South East Asia's largest ferrous scrap importer, has witnessed a maginal price correction w-o-w. Meanwhile, prices have corrected by over $50/tonne (t) in the last one month. But, notably, despite the sharp decrease in imported scrap prices, limited trade was recorded for the imported material. Market players have chosen to wait and watch for further price corrections.

Japanese-origin H2 grade bulk offers stand at $495-500/t CFR Vietnam levels, marginally down by $3/t w-o-w, on lower bids.

Domestic scrap prices fall $13/t w-o-w: Domestic scrap prices in Vietnam have dropped by VND 300/t ($13/t), w-o-w, as per latest reports. The procurement prices of H1 and H2 grades are VND 10,700/kg ($465/t) and VND 10,400/kg ($452/t), respectively.

BF-route billets offers from the country inched up by $5/t on a w-o-w basis to $615/t FOB, according to SteelMint sources. No deals were heard to have been concluded last week.

Furthermore, many steel mills are waiting for existing inventory to come down. Slow domestic consumption kept them observing the market.

Overview of other South East Asian markets

Market sentiments remained negative in the Indonesian scrap market. Fresh offers for Australia-origin shredded 211 were at $518/t CFR Jakarta, while PNS was quoted at $535/t CFR Jakarta levels. However, limited deals were heard at these levels.