Vietnam: Imported scrap prices remain under pressure on lower bids
Vietnam’s steel mills and scrap buyers were mostly quiet last week, as import offers continued to fall further. Dull demand from domestic and overseas buyers fo...
Vietnam's steel mills and scrap buyers were mostly quiet last week, as import offers continued to fall further. Dull demand from domestic and overseas buyers for semi-finished and finished steel slowed down the scrap trade. Meanwhile, heavy rainfall in many parts of the country led to slow construction activities.
Scrap buyers and mills were mostly away from the Japanese market. Mills preferred to book bulk cargoes from the European/ Baltic region due to competitive prices. Another bulk European cargo was heard booked at $400/t CFR basis.
Imported Japanese bulk H2 scrap was being offered at $405/t CFR levels, down $20/t w-o-w. Japanese suppliers are likely to quote fresh offers at a discounted price to Vietnam due to the subdued domestic market.
In contrast, offers are mostly absent from the US on discrepancies in bids and offers.
Domestic scrap prices in Vietnam fall further
Procurement prices for domestic scrap have come down significantly on low demand from end-users. Domestic H1 and H2 grades are at VND 10,000/kg ($435/t) and VND 9,700/kg ($422/t), respectively, falling by VND 700/kg w-o-w. Additionally, prices for the same in South Vietnam (Ho Chi Minh City) are VND 9,100/Kg ($395/t) for H1 and VND 8,800/Kg ($383/t) for H2.
Vietnam's billet export offers drop $50/t w-o-w: Vietnam's BF-grade billet export offers stood at around $560/t FOB, a w-o-w decrease of around $50/t.
Other SE Asia scrap markets overview
- Thailand: Steel mills in Thailand have opted to wait and watch, owing to the subdued finished steel market and sufficient inventory in hand. Limited offers were available in the market, while the bid price for the Central America-origin HMS 1&2 (70:30) was at $320/t CFR.
- Indonesia: Most preferred imported offers for Australia-origin PNS were at $430/t CFR Jakarta, with no firm deals reported.