As Vietnam continues to import scrap, higher Japanese offers are causing caution amongst market players. Ex-US scrap offers relatively remain stable for containerized and bulk cargoes, but appreciating Japanese yen has caused ex-Japan scrap quotations to move up again this week. It can be seen that Vietnamese buyers were inclined to accept some of the rise, but further uptrend raises questions about sustainability.
Ex-US containerized HMS I/II 80:20 scrap prices are at $385/mt CFR Vietnam, $5/mt higher on the lower end week on week. Indications for ex-US West Coast HMS I/II 80:20 offers for bulk cargoes to Vietnam are still at around $430/mt CFR. However, a Vietnamese source said that “[It is] difficult for Vietnamese producers to order bulk cargoes under the current market situation, buyers do not dare to buy such big quantity”.
Meanwhile, deals for Japanese H2 grade scrap to Vietnam were closed at around $391/mt CFR, bookings last week were closed in the range of $382-385/mt CFR Vietnam. Currently, Japanese H2 scrap offers to Vietnam are closer to $400/mt CFR and market sources report this price is not acceptable for Vietnamese mills.
SteelOrbis’ reference price for ex-Japan H2 scrap has remained stable at JPY 51,000-53,000/mt ($360-374/mt) FOB. However, the appreciation of the Japanese yen resulted in $7/mt increase in dollar-based quotations over the past week. The lower end is represented by H2 deals done by Vietnamese producers, while the upper end is represented by Kanto tender results and Taiwan’s procurement prices.
$1 = JPY 141.72