Vietnam’s ferrous scrap imports were recorded at 0.66 million tonnes (mn t) in Jul’21, an increase of 5% m-o-m vis-a-vis 0.63 mn t in Jun’21. The US was the largest supplier followed by Japan in Jul’21. Ferrous scrap import bookings rose on account of rising steel demand and improved construction activities in the previous month before the lockdown had started.
However, on a y-o-y basis, import volumes rose by 37.5% to 0.66 mn t in Jul’21 compared to 0.48mn t in Jul’20.
During Jan-Jul’21, Vietnam imported 3.7 mn t of scrap against 2.95 mn t in the corresponding period last year (CPLY).
Highlights
- Imports from the US rise: The US was the largest scrap supplier to Vietnam in Jul’21 at 0.28 mn t, up as against 0.27 mn t Jun’21. Deals undertakings for imported scrap increased owing to lower offers from the US-based mills which found favour with the Vietnam buyers.
- Imports from Japan fall: Vietnam’s scrap imports from Japan were recorded at 0.19 mn t in Jul’21, down by 24% against 0.25 mn t in Jun’21. Japanese steel makers saw a decline in exports owing to less inquiries from Vietnam mills as the latter were less interested in booking at higher prices from Japan.
Japanese domestic scrap prices rose to JPY 51,000/tonne (t) in June from JPY 47,000/t in May for Utsunomiya plant, as per SteelMint.
- Imported scrap prices from Japan marginally down: SteelMint’s monthly price assessment for bulk Japanese H2 scrap stood at $500/t CFR Vietnam in Jun’21 as against $503/t in May’21.
Outlook
Ferrous scrap demand slowed down in Jul’21 due to a surge in Covid-19 cases and lockdown restrictions. As a result, scrap consumption also slowed down in the domestic market due to the shutdown of most mills. Ferrous scrap imports are expected to remain on the lower side in the near future.
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