Vietnamese scrap import market strengthens

Posted on 06 April 2021

The Vietnamese scrap import market has firmed, Kallanish notes.

Japanese-origin H2 scrap offers have risen to $445/tonne cfr southern Vietnam. Trading sources said on Friday they had not yet heard of any deals taking place at this level. "I think that the workable level would be at $440-445/t cfr southern Vietnam," a local trader observed. Bookings took place at $432-435/t cfr Vietnam during the week ending 26 March.

Scrap import prices are going up sharply because of soaring freight costs, a Vietnamese mill manager says. He estimates freight from Japan to Vietnam now costs $60/t compared to $35-40/t last year. "Some shipowners are asking for more than $60/t," he adds.

Hong Kong-origin scrap prices have also gone up. A cargo for HMS 1/2 50:50 scrap was heard ordered on Friday at $440/t cfr southern Vietnam, some market sources report. However, a southern Vietnamese importer said offers on Friday were still at $435/t cfr.

Demand for construction steel has improved because prices are going up, the importer continues. "Buyers are still stocking up on almost all steel products before prices increase further amid demand from China," he comments. Hong Kong 50:50 scrap was previously booked at $425/t cfr Vietnam during the week through 19 March.

Source : Kallanish