Vietnam: Ferrous Scrap Imports Double in Jan’18

Vietnam recorded highest monthly scrap imports in Jan’18 in last five years, sharply rising steel production in the country is resulting in increased scrap imports.

Vietnam – one of the world’s fastest emerging steel market has recorded highest monthly scrap imports in Jan’18 since 2013. Earlier to this highest monthly scrap imports was recorded at 0.39 MnT in Aug’17 in last five years.

As per recently released customs data, Vietnam imported 0.50 MnT ferrous scrap in Jan’18 which has doubled with 100% increase on Y-o-Y basis as against 0.25 MnT ferrous scrap imports in Jan’17.

Vietnam also witnessed a growth of almost 35% M-o-M in its ferrous scrap imports in Jan’18. The country had imported 0.37 MnT ferrous scrap in Dec’17.

Vietnam’s crude steel production doubled in 2017- According to World Steel Association, the country witnessed sharp increase in crude steel production in CY17 which was significantly up by 100% to 10.30 MnT as against 5.15 MnT crude steel produced during CY16. The country’s increased ferrous scrap imports can be attributed to rising steel production.

United States emerged as largest source of ferrous scrap to Vietnam –

In Jan’18, United States supplied highest 0.14 MnT ferrous scrap occupying 28% share in total ferrous scrap imports to Vietnam. United States recorded 180% M-o-M hike in scrap exports in Jan’18 against 0.05 MnT in Dec’17. However, Japan the largest scrap exporter of CY17 to Vietnam has exported 0.13 MnT (+117% Y-o-Y) ferrous scrap and remained second largest exporter in Jan ’18.

Australia and Hong Kong supplied 0.07 MnT (133% Y-o-Y) and 0.06 MnT (+50% Y-o-Y) ferrous scrap in Jan’18 to Vietnam respectively. While other major exporters were New Zealand (0.03 MnT), Philippines (0.03 MnT), Singapore (0.01 MnT) and Chile (0.01 MnT).

In CY17, out of 3.91 MnT scrap imported to Vietnam, Japan remained highest exporter with 1.52 MnT scrap exports followed by Hong Kong (0.69 MnT), United States (0.61 MnT), Australia (0.55 MnT) and Singapore (0.19 MnT) respectively.

Vietnam remained largest importer in Japan’s monthly scrap export tender – During 2014-16, Vietnam occupied highest 73% share with 546000 MT out of 748000 MT ferrous scrap exports carried through monthly scrap export tender ‘Kanto Tetsugen’ from Japan.

Country-wise Vietnam ferrous scrap imports –

Quantity In MnT,
Source: SteelMint Stats