ASIA FERROUS SCRAP: Vietnam buyers stay away despite narrowing US-Japan offers

Asian ferrous scrap buyers remained on the sidelines this week amid expectations of spot prices falling further.

Taiwanese buyers purchased limited quantities of containerized cargoes at lower prices, while Vietnamese buyers bought mostly higher-grade materials. 
The spread between ferrous scrap offers from the United States West Coast and Japan narrowed considerably over the past week, after offers for deep-sea cargoes fell to $263 per tonne cfr Vietnam.
However, this does not mean that US-origin material is more cost-effective for buyers, because it continues to hold at least a $10-15-per-tonne premium over Japanese scrap.
The rapid spread of the novel coronavirus (2019-nCoV) through Europe and the United States may also affect scrap collection and result in decreased supplies. 
Fastmarkets’ weekly price assessment for steel scrap H2 Japan-origin import, cfr Vietnam, was $240 per tonne cfr on March 20, down by $10-12 per tonne from $250-252 per tonne last week.

Bulk cargoes of Japanese H2 scrap was offered...


Paul Lim

March 20, 2020

10:20 GMT