Vietnam: Imported scrap prices rise in recent bulk bookings

US scrap suppliers managed to achieve higher prices in recent bulk deals concluded for Vietnam, sources have confirmed SteelMint. Hike in freight rates and tighter material availability has pushed offers up further.

Scrap prices offered from the US markets have increased over a week. A steelmaker has booked USA origin bulk scrap cargo, comprising 30,000 t of HMS 1&2 (80:20) at $475-477/t CFR Vietnam basis, reliable sources have confirmed to SteelMint.

• Assessment for bulk USA origin HMS 1&2 (80:20) to Vietnam stands at $476/t CFR levels, moving up considerably by $35/t compared to the beginning of last week.
  
  
• SteelMint's assessment for Japanese H2 bulk stands at $472/t CFR Vietnam basis, witnessing stability as compared to closing of the last week. However, offers have risen increased significantly by $15 compared to the beginning of last week.
  
  
• Vietnam-based steel mill has booked Japanese bulk scrap cargoes at increased offers, mid of last week, comprising 3,000 t of H2 grade at around $470/t CFR Vietnam.
  
  

Domestic scrap prices rise further: Vietnam's domestic scrap prices have soared by VND 400/kg ($17) w-o-w. H2 grade scrap now stands at VND 9,200/kg ($388) exw against VND 8,800/kg in the preceding week, SteelMint learnt.

Vietnam's steel production rises on y-o-y basis: Steel production has reached 2.65 mn t in Jan'21, witnessing a 61% increase on CPLY, as per a report released by VSA (Vietnam Steel Association). Steel export recorded more than 457,797 t, up 61% y-o-y as compared to Jan'20.

Steel consumption expected to drop in Jan-Feb'21: Steel consumption in the first two months of 2021 is estimated to decrease by up to 30% compared to the same period in 2020, according to Mr. Nghiem Xuan Da - Chairman of Vietnam Steel Association. Due to the COVID pandemic, circulation of goods and raw material turned difficult which resulted in a suspension of few construction projects in northeast Vietnam, he added.

Indonesia scrap market remains quiet: Post CNY holidays imported scrap offers to Indonesia continue to rallied, buyers turn cautious and postponed their bookings. Last week Indonesian scrap market was quiet, however, offers have jumped sharply over a week.

Indonesia- an emerging ferrous scrap market, imported 0.11 mn t of scrap in Jan'21, down by 21% as against 0.14 mn t imported in Dec'20, as per data maintained with SteelMint. Hong Kong continued to be the largest supplier with 0.02 mn t in Jan'21, followed by Singapore and UK. A sharp hike in scrap offers kept Indonesian buyers away from the market.

Thailand's scrap market overview: Imported scrap offers to Thailand maintain its upward momentum. Offers have increased by $5-10/t to $405/t CFR levels for HMS 1&2 (80:20) from Central America. Auto production numbers have continued to increase in Jan'21. A total of 148,118 units were produced in Jan'21, increasing slightly by 4% m-o-m as compared to 142,969 units were recorded in Dec'20, according to the FTI (Federation of Thai Industries).