While the finished steel markets have remained stable in Vietnam, import scrap prices in the country are under pressure. Market players think that scrap quotations are very high for the Vietnamese mills. On the other hand, scrap suppliers report that there is some interest coming from South Korean mills. “The South Koreans would like to purchase some heavy scrap, but there is a huge gap between their target prices and the Japanese market prices,” one market players commented. Some Japanese suppliers believe Vietnam is being aggressive in the pressure exerted on scrap prices and so they are not in a rush to conclude sales, but instead are waiting for the Kanto tender which is due to be closed January 1.
A deal for ex-US containerized HMS I/II 80:20 scrap was signed at $385/mt CFR Vietnam, sideways as compared to the offers recorded a month ago. Ex-US West Coast HMS I/II 80:20 offers for bulk cargoes to Vietnam are at $415-417/mt CFR. However, a Vietnamese source said, “There is no interest in bulk cargoes for now.”
Meanwhile, deals for Japanese H2 grade scrap to Vietnam were closed at around $400/mt CFR. Currently, Vietnamese buyers are targeting lower levels for Japanese HS and shindachi grades, at $420-422/mt CFR and $420/mt CFR, respectively. A Japanese source reported they had already sold shindachi to Vietnam at $422/mt CFR at the end of last month.
SteelOrbis’ reference price for ex-Japan H2 scrap has widened this week to JPY 50,000-54,000/mt ($344-372/mt) FOB. Amid the depreciation of the Japanese yen, dollar-based quotations have declined by $16/mt on the lower end and by $2/mt on the upper end as compared the levels recorded on December 15. The lower end is represented by the deals done by Taiwanese producers, while the upper end is represented by Vietnam’s purchase prices.
$1 = JPY 145.26