This has had the effect of damping the spot import market, which has stayed soft in recent weeks because buyers have reduced their spot requirements in an effort to reduce inventory levels.
“Many companies are hesitant about discussing new import cargoes because there are still high inventories of ferrous scrap stockpiled at discharge ports,” a Vietnamese trader said.
And although deals are still being concluded, liquidity has dropped significantly, sources said.
Bulk Japan-origin HMS 2 scrap has traded at $347-348 per tonne cfr Vietnam in recent weeks, against offers of $348-353 per tonne cfr Vietnam. And the bearish sentiment in the spot market is prohibiting further price rises.
Trades of bulk cargoes of HMS 1&2 (80:20) have been concluded at premiums of $10-15 per tonne above the price of H2-grade bulk cargoes,...