Export Prices For Japanese Scrap Have Increased.

Tight lending restrictions in Vietnam continue to harm the steel industry.

Sangyo Shinko received 6,000 tonnes of H2 grade scrap in the most recent tender, which began on January 12, at a price of JPY 51,030 per tonne ($388/t), while JFE Shoji received 5,000 tonnes for a price of JPY 50,815 per t. The average bid was JPY 50,932/t fas (around JPY 52,000/t fob), which is JPY3,364/t more than the previous tender from December.

After the tender, market sources in Vietnam are awaiting further bids for Japanese H2 scrap. Wednesday saw the most recent bids at $425/t cfr Vietnam. According to sources in importing and trading, the import market was calm last week and this week. Last week, the going rate for bids was $420/t cfr, and some purchasers wanted to bid at $410/t cfr.

Credit restrictions continue to hit  Vietnamese steel industry. A steel mill manager said on Thursday that domestic demand could not absorb local steel production due to the difficulty of obtaining credit for developers. He added that steel producers could not compete in the export market because of the low financing costs of other countries.