Ferrous scrap import prices into Southeast Asia have fallen by $5 per tonne in the past three weeks as buyers in the region shun high offers from suppliers.
HMS 1&2 (80:20 mix) material in containers changed hands at $455-460 per tonne cfr this week in Vietnam, Malaysia, Singapore, and the Philippines, down from $455-465 per tonne cfr three weeks ago.
“Prices have been staying at this level for some time. They cannot seem to go up,” a mill official in Indonesia said.
“Buyers are not willing to pay too much for scrap when prices of finished products have remained flat,” a mill official in Malaysia said.
In Vietnam, demand for scrap is slowing down, sources said.
“The reason why prices have not fallen [more] is because there is no supplier willing to supply at too low prices,” a trader in Vietnam said.
“Some buyers, for example, are bidding at $450-455 per tonne cfr, but no supplier is willing to take this,” she said.
Some bookings were confirmed at $460 per tonne cfr in the Haiphong region on Wednesday May 9, according to another trader in Vietnam.
Booked transactions in Southeast Asia are similar to Metal Bulletin global prices.
Metal Bulletin’s Daily Ferrous Scrap Index was close to being unchanged at $448.61 per tonne cfr Iskenderun on an HMS 1&2 (80:20) basis on Tuesday May 8, compared with the previous figure published on Friday May 4, which was $448.64.
New offers from European and US suppliers have also remained flat at $460-470 per tonne cfr, unchanged from four weeks ago.
The breakbulk market saw some activity this week with a booking in Vietnam at the $475-480 per tonne cfr level, unchanged from the last booking reported in March.
New offers are at $475-485 per tonne cfr, widening from the $475-480 per tonne cfr three weeks ago.