Vietnam: Imported scrap offers fall further on subdued steel market sentiments

Vietnam’s imported scrap market was mostly silent due to heavy rain in many parts of the country. The limited demand from domestic and overseas buyers remained slow. However, major mills managed to get bulk bookings at discounted prices. Imported scrap prices dropped further in two Baltic bulk cargoes bookings done last week. 

• Around 30,000 t of mixed bulk cargo, comprising HMS 1&2 (80:20) and shredded, was booked at $420/t CFR HO Chi Minh City. 
  
  
• Another cargo for 8,000 t of bonus material was booked at $435/t CFR Ho Chi Minh City.
  
  

Current offers for bulk US-origin HMS 1&2 (80:20) are at $425-430/t CFR levels, down by over $20/t w-o-w.

Meanwhile, indicative offers for Japanese bulk H2 are currently heard at $420-430/t CFR levels,  down by 10/t w-o-w. However, mills have postponed bookings for Japanese cargo.

The procurement prices for domestic H1 and H2 grades are at VND 10,700/kg ($465/t) and VND 9,900/kg ($430/t), respectively. Meanwhile, domestic IF-grade billet  offers stood at around VND 13,850/t ($602/t).

Market participants believe that offers will fall further due to weakened demand for semi-finished and finished steel.

Vietnam's billet export offers fall by $15/t w-o-w: Vietnam's BF-grade billet export offers stood at around $610/t FOB, a fall of $15/t as against the closing on 3 June 2022. However, no significant deal was heard to be concluded.

Other SE Asia scrap markets overview

Thailand: Buyers' price idea for Central America-origin HMS 1&2 (70:30) was at $375-380/t CFR, while suppliers' offers are still on the higher side. A deal was heard concluded at $390/t CFR levels last week.