Scrap prices drop in East Asia
Posted on 28 May 2021
Japanese scrap prices started falling this week in Vietnam after reaching peaks around 10-14 days ago, Kallanish notes. Offers for H2 slid below $500/tonne cfr Vietnam on Wednesday after reaching highs of $530/t cfr.
Offer prices for Japanese H2 scrap are prevailing at $490-497/t cfr Vietnam. These levels are not enticing buyers because domestic scrap is also correcting downwards, trading sources say. Vietnamese mills are targeting a buying price for H2 at $480/t cfr Vietnam, while some small mills are only using local scrap and have stopped giving bids for H2 altogether, a local trader says. Two large Vietnamese mills have recently lowered their domestic scrap prices between VND 350-450/kg ($15-20/t), he adds.
Prices for local scrap are falling and are more competitive than imports, a mill manager says. The price for Grade 1 above 6mm scrap fell to around $445/t on 27 May in southern Vietnam, from $455/t the day before, mill sources say.
Another mill manager says that while it is good that scrap prices are coming off, billet prices are also weakening. Induction furnace billet, now priced at VND 14,800/kg ($642/t) ex-works northern Vietnam, is facing low demand, a trader says.
US bulk HMS 80:20 offers are currently heard at $515/t cfr Vietnam. This is still higher than deals for two US bulk cargoes which closed at $510/t cfr Vietnam during the week beginning 10 May.
Meanwhile, Taiwan’s Feng Hsin Iron & Steel has lowered its scrap procurement prices. Effective 28 May, the mill will lower its Busheling and turnings prices by TWD 500/t ($18) and for other grades by TWD 300/t. Other EAF mills in Taiwan will also do the same, a Taipei trader says.Source : Kallanish