Vietnam: Imported scrap trade remains dull, buyers await Kanto tender

Vietnam's imported scrap market remained silent on the back of bearish finished steel sentiments. Most market participants are holding their bids and offers, waiting for a clear price direction. Fresh offers have declined further, while negotiations remain slow.

Japanese Kanto scrap export tenders have been scheduled for 10 May, and suppliers may quote fresh offers post-tender.

Construction activities in Vietnam's domestic market are expected to increase in the near term due to supportive government policies.

Recent offers

Offers for Japanese material have lost $10-15/t since last week, coming down to $380/t CFR Vietnam for H2 grade. Buyers are still not ready to offer firm bids for Japanese material.

US-origin HMS bulk offers were heard at $380-390/t, down by $10-15/t w-o-w. Deals remained absent.

Vietnam's Hoa Phat has reduced monthly HRC (SAE1006, non-skinpasses) prices sharply by VND 1,700/kg ($70/t) for June and early-July, 2023 sales. Post-revision, effective prices stand at $610/t CIF HCMC or VND 14,330/kg, excluding VAT. Subdued domestic and overseas demand led to a drop in offers. Formosa Ha Tinh has also lowered HRC prices for June shipments and is offering discounts as well to push up sales.

Additionally, the country's BF-grade billet export offers moved down by around $30/t w-o-w to $500/t FOB.

Further, Thailand's imported scrap market followed suit, with buyers not active despite lower offers available. Last offers were heard at around $350/t CFR Thailand for Central American HMS (70:30) material.

Outlook: Market participants believe that the imported scrap market is likely to pick up after the Kanto scrap export tender. Japanese materials' prices may increase as demand improves.