Posted on 18 May 2021
The Vietnamese scrap import market rose sharply after last week's Kanto Tetsugen export tender, Kallanish understands. US bulk scrap was ordered at above $500/tonne cfr last week, and offers for all other origins are tagged at this level too. But importing sources say the market could soon soften depending on Chinese price developments.
Last week, two Vietnamese mills booked a bulk 30,000-tonne cargo from a US West Coast supplier at $510/t cfr Vietnam for HMS 1&2 80:20 and $515/t cfr for shredded grade scrap. The offer, for the cargoes which are due for shipment by early July, was issued early last week, an importer says. “The [price] level is reasonable, but it will trend down soon,” he says, noting that the Chinese steel market is the regional price leader.
Offers for bulk scrap increased last week after the strong results of the Kanto tender amid robust demand from China, Vietnamese mill sources say. Japanese H2 scrap offers rose to $515-520/t cfr, while those for Hong Kong HMS 1&2 50:50 hiked to $510/t cfr.
A Vietnamese trader said on Monday that H2 offers are now at a minimum of $530/t cfr Vietnam. Offers were all below $500/t cfr two weeks ago, he adds. The importer says other than the US scrap deal, he did not hear of Vietnamese acceptance for the hiked offers.
Last week, the Japanese domestic scrap market started rising after holding steady for nearly three weeks. Tokyo Steel is paying JPY 47,000/t ($431/t) for H2 grade scrap trucked to its Utsunomiya steelworks from 15 May. The Japanese mill raised its procurement prices three times within the past week.
Source:Kallanish
