Vietnam: Imported scrap trade remains slow amidst 'bid-offer' disparities

Vietnam's imported scrap market has seen less trade amidst bid-offer disparities. However, steel mills are trying to take advantage of the price depreciation of Japanese currency and booking in small quantities.

Fresh offers for bulk Japanese H2 are being quoted at $620-630/t CFR levels. While the deal was concluded, around 5,000 t of H2 was booked at $610-615/t CFR basis last week. The weak Japanese yen remained supported by Vietnamese buyers.

US-origin bulk HMS 1&2 (80:20) is being offered at $650-660/t CFR levels. However, no fresh deals were heard.

The Vietnam-based steelmakers and buyers are looking for price correction from other origins as well, like the US, but it seems less likely.

The country imported Japanese scrap of around 0.12 mnt in February compared to 0.03 in the previous month. Imports recouped amid an increase in demand for raw materials on improved steel market sentiments, both domestic and overseas.

Overview of other SE Asian markets

• Thailand: Imported scrap offers have edged up after recent deals were concluded. In a deal concluded, 1,000 t of Central American-origin HMS 1&2 (70:30) have been booked at $535-540/t CFR levels. Fresh offers for HMS 1&2 (70:30) of Central American origin are being quoted at $540-542/t CFR LCB, inching up by $2/t w-o-w.
  
  
• Indonesia: Fresh offers for the most preferred grade, plates, and structural (PNS) increased further. PNS from Hong Kong and Singapore are being offered at $610/t CFR Jakarta, unchanged w-o-w.