SE Asian Imported Scrap Offers Correct Marginally

In recent conversations with industry participants, SteelMint learned that imported scrap prices to South East Asia have observed correction after returning from Eid holidays amid recent softening in finished steel & billet steel futures in China.

Indonesia imported scrap prices observed a lot of changes this week on global uncertainty. It observed stable demand in the opening of the week with buyer’s bids for P&S scrap of US origin at USD 315-320/MT, CFR Jakarta and at around USD 325-328/MT, CFR for busheling scrap with few deals reported in the said price range. However, in the second half of the week market has observed softening in offers as busheling scrap heard at USD 320/MT and USD 325/MT, CFR Jakarta from USA and Brazil origins.

Leading steelmakers in South East Asia reported remaining away from buying amid sufficient scrap inventories and a lot of material already been booked. Most of the buyers prefer to wait for more clarity.

“Most of the European scrap yards were not interested in buying interest shown by Turkish steel mills in the range USD 270-275/MT, CFR as they expect Turkish steelmakers should restock at higher levels” a source shared.

Vietnamese steel mills observe the flurry of offers in absence of buying interest from South Asia and Turkey this week. However, a recent price cut by Tokyo steel for the domestic scrap purchase in Japan likely pull Japanese H2 scrap export offers down further to Vietnam.