Vietnam’s ferrous scrap imports were recorded at 0.35 million tonnes (mn t) in Sept’21, an increase of 6% m-o-m vis-a-vis 0.33 mn t in Aug’21.
The US was the largest supplier followed by Japan and Australia in Sept’21.
Ferrous scrap import bookings rose slightly with minimal trade volumes observed as against last month owing to easing lockdown restriction and increased Chinese buying interest in billets.
However, on a y-o-y basis, import volumes were down by 26% from 0.47 in Sept’20.
Market highlights
- Import volumes from US rise: The bulk of the volumes originated from the US at 0.16 mn t, up 33% m-o-m in September as against 0.12 mn t in the previous month. The US steel producers registered an increase in exports as their offerings were reasonably priced and affordable for Vietnamese buyers which led to improvement in trading activities.
- Imports from Japan drop: Vietnam’s scrap imports from Japan were recorded at 0.08 mn t in Sept’21, down by 20% against 0.10 mn t in Aug’21. The major cause behind decline in imports was discrepancies in bids and offers owing to fewer inquiries as Vietnam mills showed low interest in booking at higher prices from Japan. Meanwhile, Japanese suppliers were engaged in making profit in the domestic market due to high scrap demand.
- Imported scrap prices from Japan decline: SteelMint’s monthly price assessment for bulk Japanese H2 scrap stood at $475/t CFR Vietnam in Aug’21 down by around $15-20/t CFR against $494/t in the previous month.
- Imports from Australia witness hike in volumes: Vietnam’s imports from Australia ranked third in Sept’21 at 0.04 mn t, a sharp increase from Aug’21 levels of 0.01 mn t, SteelMint data showed.
Outlook
Active Chinese procurement of billets will likely sustain increased bookings of imported scrap.
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