Vietnam’s scrap market remains stable

Friday, 24 May 2024 16:24:55 (GMT+3)   |   Istanbul

Ahead of the rainy season in Vietnam, market sources report that there is some interest in buying scrap. However, the current offer prices coming from abroad are still considered high. According to deputy prime minister Le Minh Khai, “Industrial activity is recovering in Vietnam at a slow pace.” Vietnam is targeting economic growth of 6.0-6.5 percent this year.

SteelOrbis has learned that Japanese H2 scrap offers to Vietnam have remained in the range of $370-380/mt CFR during the past week. Meanwhile, Japanese HS grade scrap prices for Vietnam are at $405-410/mt CFR. The lower end of the offer prices is considered workable for Vietnamese mills.

Offers for ex-US containerized HMS I/II 80:20 scrap are at $355-360/mt CFR Vietnam.

This week, Tokyo Bay FAS-based prices for H2 grade scrap have been at JPY 50,000-51,500/mt ($318-328/mt), up JPY 500/mt on the upper end. However, due to the depreciation of the Japanese yen against the US dollar, Tokyo Bay FAS-based prices for H2 grade scrap have decreased by $2/mt on the lower end and increased by $1/mt on the upper end week on week. This level shows that FOB prices are at JPY 51,000-52,500/mt ($325-334/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 been revised upwards by JPY 500/mt week on week but just on the upper end. In dollar prices, this has resulted in a $3/mt decline on the lower end, but a $1/mt increase on the upper end.

It may be noted that POSCO shared bids for Japanese shredded scrap at JPY 57,500/mt ($368/mt) CFR earlier this week and, with the JPY-US dollar exchange rate at 156.14, this level indicated FOB-based prices for Japanese shredded scrap were at around JPY 54,500/mt ($349/mt).

As a result, SteelOrbis’ reference price for ex-Japan H2 scrap is currently at JPY 51,000-53,300/mt ($324-339/mt) FOB. The lower end represents the Tokyo Bay prices and the upper end is represented by Vietnamese producers’ workable levels.

$1 = JPY 157.04


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