Vietnam: Imported scrap trade subdued on sluggish finished steel market

The imported scrap trade remained subdued as a result of sluggish finished steel demand in the domestic market. The limited scrap demand kept fresh bookings lower despite favourable prices.

Imported scrap prices to Vietnam rose due to material shortages. Market participants are waiting for the upcoming Japanese Kanto tender for a clear market direction.

• SteelMint's assessment for Japanese H2 material is at $370-380/t CFR levels, moving up by $10-20/t w-o-w. Japanese suppliers are yet to quote fresh offers and have opted to wait for a clearer market direction.
  
  
• Assessment for US-origin bulk offers are now at $380-385/t CFR levels, moving up by around $20-25/t w-o-w. However, buyers are yet to resume bulk cargo bookings due to disparities in bids and offers. This is because US suppliers were also increasing their offers given the tight scrap supply scenario and active buying from Turkish steelmakers.
  
  

However, mills may resume showing interest in bulk scrap trading and will need to restock inventory as they have been absent from the market last month.

Two major mills closed their blast furnaces last month. This has reduced the plant's operations by two-third, as only one blast furnace remains operating. The company views the closures as necessary for its survival during the current downturn in the steel industry.

Furthermore, many industry experts believe that the market will pick up in the new year ahead of the upcoming winter holidays. Meanwhile, the domestic steel market is yet to recover.

Overview of other SE Asian scrap markets

• Indonesia: Fresh indicative offers for Australian HMS 1&2 (90:10) at $380/t CFR Jakarta, while PNS UK-origin are at $390/t CFR Jakarta.
  
  
• Thailand: Australian-origin HMS 1&2 (80:20) is being offered at $350/t CFR, whereas, Central American HMS 1&2 (7:30) is being offered at $315/t CFR.