Scrap market softens in Vietnam

Scrap prices have fallen further in Vietnam, Kallanish notes.

Japanese grade scrap offer prices have slipped from last week. Offers are now prevailing at lows of $259-260/tonne cfr Vietnam. “Negotiations are ongoing but for small lots,” an importer says. He believes suppliers could possibly let go of material at $254/t cfr.

Last week on Thursday, a deal for 5,000 tonnes of Japanese H1/H2 50:50 concluded at $269/t cfr Vietnam, which would be equivalent to $264/t cfr for H2 grade scrap.

A deal for 30,000t of HMS 1/2 80:20 from the US West Coast was booked around two weeks ago at $284/t cfr Vietnam. Another US bulk scrap deal was heard concluded last week at $275/t cfr Vietnam. Offers for US bulk 80:20 scrap have fallen to $269-270/t cfr Vietnam from $280-282/t cfr last week, trading and importing sources in Vietnam say. A Vietnamese mill ordered containerised 80:20 scrap from the US at $240/t cfr Vietnam on Tuesday.

Local scrap prices have fallen this week by VND 100-200/kg ($4-8/t). EAF mills are finding it difficult to compete with blast furnace mills because of high-priced scrap, a trader says. They have had to press scrap prices down, or cutback on melting operations, she adds.