Vietnam has returned to the markets from its Lunar New Year (Tet) holiday, though some buyers have extended their holiday. As a result, finished steel and scrap transaction activity in the country has remained slow. Some market players expect import scrap prices to move down further. According to a Vietnamese source, those who are expecting a fall in prices anticipate at least a $10-15/mt downward revision. In the meantime, the South Korean domestic scrap market has remained stable. Market players are monitoring the market for a clearer direction, a source from South Korea has reported. A Japanese scrap supplier also said there are some purchase inquiries coming out of South Korea, but nothing concrete has been done yet. He added, “There is a shortage of scrap supply. This surprises South Korean producers. We heard some Korean mills would like to buy some cargoes, but the price is difficult, based on Japan.”
Vietnamese buyers’ bids for Japanese grade H2 scrap are still in the range of $390-395/mt CFR, with sellers’ ideas remaining higher. Before the holidays, offers for Japanese H2 grade scrap to Vietnam were at around $405/mt CFR, while the bids shared by Vietnamese buyers were at $390-395/mt CFR. Workable levels for Japanese HS and shindachi scrap are at $410-415/mt CFR. As SteelOrbis mentioned in its report for Taiwan, a source from Japan commented, “Ex-Japan scrap quotations remain firm due to the weak yen.”
Meanwhile, ex-US West Coast containerized HMS I/II 80:20 scrap remains at $370-375/mt CFR Vietnam, $10-15/mt lower as compared to last month’s actual deals. Ex-US West Coast HMS I/II 80:20 offers for bulk cargoes to Vietnam are at $405/mt CFR, down from $415-417/mt CFR recorded a month ago. However, little interest has been shown in bulk offers and no bids from producers have been heard for this segment.
SteelOrbis’ reference price for ex-Japan H2 scrap has decreased on the lower end by JPY 500/mt to 51,500-54,100/mt ($343-360/mt). Dollar-based prices have declined by $5/mt on the lower end and by $2/mt on the upper end. The lower end is represented by offers received by Taiwan, while the upper end is represented by Vietnamese buyers’ ideas for this grade.
$1 = JPY 150.28