Vietnam: Imported scrap market quiet as buyers await Kanto tender
Vietnam’s imported scrap market has remained largely quiet for yet another week with prices remaining mainly range-bound. The prices for bulk Japanese H2 remained s...
Vietnam's imported scrap market has remained largely quiet for yet another week with prices remaining mainly range-bound. The prices for bulk Japanese H2 remained stable at $490-495/t CFR levels.
Market participants are waiting for the monthly Kanto scrap export tender scheduled later this week and hence resisting to lower offers any further.
Meanwhile, Vietnamese steelmakers and buyers have opted to wait and watch for a clearer price direction. The average bid price for H2 scrap in Japan's November Kanto scrap export tender stood at JPY 51,124/t ($453/t) FAS. The average bid fell by JPY 2,089/t ($19/t), m-o-m. Notably, the tender remained inconclusive with no deals closed as bids received were lower compared to the prices last month which were trading at multi-year highs.
On the other hand, another key scrap supplier country, USA, received lesser inquiries from Vietnam, as buyers were quiet and no major activities were recorded last week, said a US scrap trader.
As the domestic market has been affected by the Covid-19 pandemic, many small steel enterprises experienced a sharp decline in profit in the last three months.
Domestic scrap prices stable w-o-w: Ferrous scrap prices in Vietnam remain unchanged, w-o-w, as per latest reports. The procurement prices of H1 and H2 grades are VND 10,700/kg ($465/t) and VND 10,400/kg ($452/t), respectively.
On the other hand, sluggish market sentiments kept steelmakers under pressure to lower rebar prices.
Overview of other South East Asian markets
- Indonesia market quiet: Fresh offers for Australia-origin HMS 1 was at $510/t CFR Jakarta, while PNS from the same origin is being offered at $540/t CFR Jakarta levels. Shredded offers from New Zealand are being quoted at $527/t CFR Jakarta. However, limited deals were heard at these offers as buyers were quiet.
- Imported scrap offers firm in Thailand: Imported scrap offers to Thailand are mostly firm at $440-445/t CFR for HMS 1 and 2 (80:20) from Central America.
Thailand's ferrous scrap imports were recorded at 0.11 mn t in Oct'21 against 0.12 mn t in Sept, volumes are mostly stable on monthly basis, as per customs data maintained with SteelMint. Australia was the leading exporter to Thailand in Oct'21 with 14,252 t.