Vietnam: Imported scrap trade slows down at higher offers

Imported scrap trade in Vietnam slowed down on limited market activities and lower buying interest at quoted offers. Though offers inched up, less consumption from end users and slow trade are likely to keep offers under pressure in the near term.

Japanese bulk H2 is being quoted at $555/tonne (t) CFR Vietnam, up slightly by $5/t w-o-w. The discrepancy in the bid and offer remained a major concern in the already slow market. It is heard that Japanese suppliers will reduce scrap offers to their potential buyers, due to the recent fall in domestic scrap prices.

On the other hand, no firm offers were heard from the US, while the price indications were at $535-540/t CFR Vietnam levels.

Vietnam domestic market

• Scrap purchase prices unchanged w-o-w: Domestic scrap is mainly supplied to induction furnaces. The procurement price for H1 grade stands steady on a weekly basis at VND 12,400/kg ($539/t) while H2 scrap is being offered at VND 12,100/kg ($526/t).
  
  
• Rebar prices up w-o-w: Despite slow rebar consumption, domestic rebar prices moved up further by VND 200-250/kg to VND 16,600-16,650/Kg exw.
  
  
• Vietnam's billets export offers drop: Vietnam's billets exports market remained less active this week. According to SteelMint sources, the country's BF-route offers are at $680-690/t, FOB, a w-o-w drop of around $25/t.
  
  

The Vietnam market remained confused after the Chinese market turned subdued last weekend. Scrap buyers were looking for price correction alongside a decrease in billet prices, SteelMint learnt. Steel billet prices in China's key steel market of Tangshan remained stable at RMB 4,900/t ($766/t) on 1 Nov'21, inclusive of 13% VAT. According to data maintained with SteelMint, China's rebar futures contract for Jan'22 delivery on the Shanghai Futures Exchange (SHFE) closed today at RMB 4,509/t ($705/t), a sharp drop of RMB 137/t ($21/t) compared to 29 Oct'21.

South East Asia market overview

• Indonesian scrap market slows down: Imported scrap offers for Australian PNS were at $540/t CFR Jakarta last week, a fall of $5/t against last week. Containerised HMS 1&2 (80:20) was offered at $505/t CFR Jakarta levels, stable w-o-w. However, no deals were concluded at these offers.
  
  
• Thailand's imported scrap offers inch up: The most preferred Central America-origin HMS 1&2 (80:20) moved up further by $5-10/t w-o-w to $475-480/t CFR levels.