Vietnam steel scrap prices slide amid weaker demand, bearish sentiment
Imported steel scrap prices in key market Vietnam were lower this past week amid weak demand from steelmakers, which are facing depressed long steel prices in the domestic markets and high inventories
Offers for bulk heavy melting scrap (HMS) 1&2 (80:20) slipped further this week; Australian materials were offered at $630 per tonne cfr Vietnam, while materials from United States’ West Coast were offered at $620-630 per tonne cfr Vietnam. These offers are down from $638-640 per tonne cfr Vietnam last week.
Most steelmakers in southern Vietnam have not been sourcing imported ferrous scrap, due to sufficient quantities already bought in the preceding week and amid expectations of more price falls to come, with a few bids heard at $610-620 per tonne cfr Vietnam.
Fastmarkets’ weekly price assessment for deep-sea bulk cargoes of steel scrap, HMS 1&2 (80:20), cfr Vietnam, was $620-630 per tonne on Thursday April 14, falling by $10 per tonne from $630-640 per tonne cfr Vietnam in the previous week.
Offers for bulk Japanese H2 increased to $610-615 per tonne cfr Vietnam from $600 per tonne cfr Vietnam after the Kanto Tetsugen auction was concluded ¥3,700 ($29.43) per tonne higher on Tuesday. But offers slipped to $610 per tonne cfr Vietnam by Thursday.
Bids were at $600 per tonne cfr Vietnam.
10,000 tonnes of H2 was sold by a Japanese trader to purportedly a Vietnamese buyer.
Spot prices for Japanese scrap remain supported by demand from Japanese steelmakers and traders, pulling scrap from the yards to sell into the domestic Japanese markets instead of exporting them to typical buyers in Taiwan and Vietnam.
Bulk Japanese HS was offered at $645-649 per tonne cfr Vietnam, while bulk Japanese shredded was offered at $640 per tonne cfr Vietnam.
It also came to light this week that a bulk Japanese Shindachi Bara cargo was sold at $640 per tonne cfr Vietnam last week.
Fastmarkets’ weekly price assessment for steel scrap H2, Japan-origin import, cfr Vietnam, was $600-610 per tonne on Friday, widening downward by $5 per tonne from the prior week.