Vietnam: Ferrous Scrap Imports Up 22% in Q1 CY18

After witnessing sharp fall by around 50% in Feb’18, Vietnam’s ferrous scrap imports picked up again by 40% M-o-M in Mar’18 amid improved scrap demand.

Vietnam – world’s one of the fastest emerging steel market has recorded 22% growth in its quarterly scrap imports in Q1’2018 against imports registered in the same quarter last year. As per customs data, Vietnam has imported 1.10 MnT ferrous scrap during Jan-Mar’18 and recorded 22% growth Y-o-Y as against 0.90 MnT ferrous scrap imports during Q1 CY17. Stability in Japanese scrap export prices in Feb’18 resulted in increased imports by Vietnam buyers.

Vietnam imported 0.35 MnT ferrous scrap in Mar’18 which has grown significantly by 40% M-o-M as against 0.25 MnT ferrous scrap imports in Feb’18.On yearly premises, ferrous scrap imports to Vietnam increased 13% Y-o-Y in Mar’18 as against 0.31 MnT scrap imports in Mar’17.

Vietnam’s scrap imports in Q1’18 remained almost stable against 1.08 MnT ferrous scrap imported in Q4-CY17.

Vietnam witnessed rising scrap imports in Mar’18 over significant surge in scrap exports from United States (+43% M-o-M), Hong Kong (+25% M-o-M) and Australia (+400% M-o-M), amid improved global scrap demand, slightly corrected prices and recommencement in stocking activities during Feb-Mar’18 after winter season in Vietnam.

Japan remained largest scrap supplier to Vietnam in Q1’2018 – Japan remained largest ferrous scrap exporter occupying 35% share in total ferrous scrap imports to Vietnam. Japan supplied 0.38 MnT ferrous scrap in Q1-2018, up marginally by 9% Y-o-Y as against 0.35 MnT in Q1-CY17. In Mar’18, Japan supplied highest (0.13 MnT, up 8% M-o-M) ferrous scrap to Vietnam. Japan witnessed marginal growth in exports as average prices remained quite strong in Japan for H2 in Mar’18.

During Q1’18, other prominent exporters to Vietnam were United States (0.31 MnT, +82% Y-o-Y), Hong Kong (0.15 MnT, +7% Y-o-Y) and Australia (0.12 MnT, +50% Y-o-Y) respectively. While other major exporters were New Zealand, Chile and Singapore respectively.

United States ferrous scrap exports increase 43% in Mar’18 to Vietnam – In Mar’18, United States second largest ferrous scrap exporter to Vietnam. USA exports surge 43% M-o-M to 0.10 MnT as against 0.07 MnT in Feb’18. Followed by other major exporters like Hong Kong (0.05 MnT), Australia (0.05 MnT) and Chile (0.01 MnT) respectively in Mar’18.

Vietnam’s crude steel production increased 24% in Jan-Feb’18 – According to World Steel Association, the country witnessed 24% Y-o-Y increase in crude steel production in Jan-Feb’18. As against 1.53 MnT crude steel produced in Jan-Feb’17, the country produced 1.89 MnT crude steel in the first two months of CY18.

Country-wise Vietnam ferrous scrap imports –

Quantity In MnT,
Source: SteelMint Stats