Following an initial consultation with the market, it has become clear that Vietnam is fast becoming a key price indicator for the ferrous scrap market in Asia, and will likely become a crucial benchmark in the region.
Its importance has grown to match that of the benchmark Metal Bulletin cfr Taiwan import price assessment, especially with import volumes continuing to grow quickly.
This is due to the rapid increase of steelmaking capacity in the Southeast Asian country, which is supported by burgeoning demand from a rapidly developing economy.
There is ample liquidity for an active fixed-price spot market and participants in the regional scrap and long steel segments are actively looking at cfr Vietnam prices to assess the latest movements.
Therefore, Metal Bulletin intends to provide a regular assessment of cfr Vietnam ferrous scrap prices in the spot market.
Metal Bulletin is seeking feedback from active participants in the ferrous scrap market on the proposed price specifications detailed below.
These, along with delivery terms and publication timing, were devised following an initial consultation with market participants. They are as follows:
Assessment: Vietnam ferrous scrap, $ per tonne, assessed range
Dimensions: HMS 1&2
Quantity: Bulk
Location: cfr southern Vietnam
Timing: Up to three months
Unit: US$ per tonne
Payment terms: letter of credit
Publication: Friday, 5-6pm Singapore time
Metal Bulletin will continue to monitor changes in the ferrous scrap markets and will adjust its methodology accordingly in consultation with the market.
Subject to feedback, the new assessment will be launched on August 3 and will follow the same publication calendar as Metal Bulletin’s cfr Taiwan ferrous scrap assessment.
To provide feedback on this price or if you would like to provide pricing information by becoming a data contributor, please contact Paul Lim at paul.lim@metalbulletinasia.com. Please add the subject heading ‘FAO: Paul Lim, re: Vietnam ferrous scrap price assessment.’
Click here to see all of Metal Bulletin’s pricing methodology and specification documents.