The Vietnamese scrap market has softened slightly over the past week. Japanese sellers report that the impact of the recent accident at Tokyo Steel’s Tahara plant is exerting pressure on domestic scrap prices, as is the lack of demand from abroad. While Tokyo Bay FAS prices have remained stable week on week, Japanese suppliers’ scrap offers to the export markets have started to move down.
SteelOrbis has learned that Japanese H2 scrap offers to Vietnam have declined by $5/mt on the upper end to $370-375/mt CFR during the past week. However, Vietnamese sources said that this level is not workable for them right now and they are sharing lower bids.
This week, Tokyo Bay FAS-based prices for H2 grade scrap have been at JPY 50,000-51,500/mt ($318-327/mt), stable on yen basis. However, due to the fluctuation of the Japanese yen against the US dollar, Tokyo Bay FAS-based prices for H2 grade scrap have decreased by $1/mt on the upper end week on week. This level shows that FOB prices are at JPY 51,000-52,500/mt ($324-334/mt) for this grade.
Meanwhile, ex-Japan HS scrap prices are currently standing at JPY 54,000-55,000/mt ($343-350/mt) FAS and shindachi scrap quotations are at JPY 53,000-54,000/mt ($337-344/mt) FAS. Both prices have remained stable week on week and, due to the minimal change in the exchange rate, dollar-based quotations have also remained unchanged.
$1 = JPY 157.30