Vietnam: Japanese scrap suppliers raise offers, deals yet to pick up

Japanese scrap traders lifted export prices last week. Active billet deals to China in the previous week rendered some support for these bookings. Tokyo Steel had increased scrap purchase prices twice last week by a total of JPY 1,500-2,000/t for all works. After the second price hike, the company's bid price for H2 scrap will be JPY 49,000/t ($446/t) for its Tahara steelworks.

Following these export offers, SteelMint's assessment for Japanese bulk H2 moved up to around $485-495/t CFR Vietnam, up by $15-20/t w-o-w. However, deals are still not concluded at the mentioned offers, sources have reported SteelMint.

Vietnam's domestic scrap prices firm: Domestic scrap prices remained steady. The local prices for scrap and rebar are stable. However, domestic billet prices have increased, Vietnamese market source confirmed.

• Domestic ferrous scrap prices in Vietnam for H1 and H2 scrap stands at VND 12,000/kg ($522/t) and VND 11,700/kg ($509/t) respectively.
  
  
• Domestic rebar prices remained stable too, at VND 15,800/kg exw last week. The average selling price for domestic rebar is at VND 16,000/kg exw.
  
  
• Domestic billet (induction furnace-route) offers were at around VND 14,600-14,650/kg exw ($635-637/t), mostly stable w-o-w. It is further expected that market operations would get a boost soon.
  
  

Vietnam's billet export offers up: BF-route billet offers from the country inched up by $12/t on a w-o-w basis. According to SteelMint sources, BF-route offers are at $675/t, FOB and no deals were heard to be concluded this week. However, the South East Asia markets turned quiet with sharp volatility in Chinese SHFE re-bar futures witnessed this week.

Highlights of other South East Asian markets

• Indonesian scrap prices climb: Imported scrap prices into Indonesia spiked compared to last week as the most preferred UK-origin PNS scrap are being quoted at $525/t CFR, Jakarta. Few trades were registered at these levels.
  
  
• Thailand's imported scrap offers unchanged: Imported scrap offers into Thailand unmoved last week. Central America-origin HMS 1&2 (80:20) stands at $430/t CFR.