Import scrap trading in Vietnam has slowed due to limited market activity and low buying interest in higher offers. Although offers are increasing, less consumption from end users and slower trading are likely to keep offers under pressure in the near term.
The price of Japanese bulk H2 is offered at $555/ton (t) CFR Vietnam, which is an increase of $5/ton. Inconsistency in bidding and bidding continued to be a major concern in the already slow market. It is heard that Japanese suppliers will reduce their scrap offers to potential buyers due to the recent decrease in domestic scrap prices.
While no firm offers were heard from the US, price indicators were at $535-540/ton CFR Vietnam.
Vietnam scrap purchase prices unchanged
Domestic scrap is mainly supplied to induction furnaces. The procurement price for H1 grade remains stable at VND 12,400/kg ($539/t) weekly, while H2 scrap is offered at VND 12,100/kg ($526/t).
Rebar prices increased
Despite slow rebar consumption, domestic rebar prices increased by 200-250 VND/kg to 16,600-16,650 VND/Kg exw.
Vietnam's billet export offers fall
Vietnam's billet export market has been less active this week. The country's BF-route offers down by $680-690/ton, around $25/ton FOB.
The Vietnamese market has been confused after the Chinese market went stagnant last weekend. He learned that scrap buyers are looking for price correction as well as the decrease in billet prices. Billet prices in Tangshan, China's major steel market, remained stable at RMB 4,900/t ($766/t) on November 1,'21 including 13% VAT. Rebar futures contract for January 22 delivery on China's Shanghai Futures Exchange (SHFE) fell sharply RMB 137/t ($21/t) yesterday, RMB 4,509/t ($705/t), according to data ) was closed. (compared to 29 Oct'21)
South East Asia market overview
The Indonesian scrap market is slowing down. Import scrap offers for Australian PNS were at $540/t CFR Jakarta last week, down by $5/ton from last week. Containerized HMS 1&2 (80:20) was offered at $505/ton CFR Jakarta. However, no agreement was reached on these offers.
Thailand's import scrap offers have increased. Most preferred Central American origin HMS 1&2 (80:20) increased $5-10/ton to $475-480/ton CFR.
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