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Kallanish Kallanish

Knowledge matters Knowledge matters

July, 14th 2020

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JUN 25
11:08

Scrap market softens in Vietnam

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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.