US east coast ferrous scrap unexpectedly offered to Vietnam

Ferrous scrap from the United States’ east coast has been offered to Vietnam in an unexpected shift in trade flows, adding on to supply pressure in the cfr Vietnam market, market sources said.

This has caused scrap prices in Asia to diverge this week, ample supply causing prices in Vietnam to decline while the Taiwanese import market remained stable.
“Scrap yards in the US east coast are offering cargoes to Asia in an attempt to chase the open arbitrage window,” a scrap trader based in Southeast Asia said.
There is an arbitrage window of about $30 per tonne for traders to exploit, with Turkish import prices trending downward toward $320-330 per tonne cfr and Vietnamese import prices remaining at $350 per tonne cfr for bulk shipments of heavy melting scrap (HMS) 1&2 (50:50).

This is especially so with US east...


Paul Lim

August 17, 2018

10:41 GMT