Vietnam Scrap Importers Book Japanese Bulk H2 Amid Falling Offers

SteelMint learned from market participants that imported scrap market in major South East Asian country, Vietnam has observed few bulk trades with sudden decline in scrap prices from Japan however, sentiments remained dull amid more competitive billet prices in the containerized scrap market.

In the recent deals confirmed, scrap importers in Southern Vietnam booked around 34,000 MT Japanese H2 in bulk shipments. A deal was concluded comprising 23,000 MT of H2 at USD 330/MT, CFR Vietnam. While two more conclusions done comprising 5,000 MT of Japanese H2 at USD 329/MT and 6,000 MT of HMS 1&2 (50:50) at USD 321/MT,CFR Phu My Port. Which keeps Japanese H2 around JPY 33,500-34,500/MT, FoB.

Japanese domestic scrap prices have come down almost six months' low with successive price cuts by Tokyo Steel in last two weeks. Which makes Japanese ferrous scrap most competitively priced in the international market for South East Asian buyers.

Spot demand in Vietnam has dipped slightly after the conclusion of the latest Japanese deals, with major buyers staying on the sidelines. Deep-sea HMS 1&2 (80:20) in containers was heard offered at USD 320-325/MT, CFR Vietnam last week.

Indonesian and Thailand steelmakers prefer billets over imported scrap - Indonesia imported scrap market remains a bit down on W-o-W basis. Buyers are chasing billets in Indonesia and Thailand. Vietnam's Formosa and Malaysia's Alliance Steel are aggressively supplying billets. Buying billets is still cheaper by around USD 20/MT than making billets from imported scrap for time being.