Vietnam’s imported scrap market remained less active for yet another week and mills kept away from making any major bookings. Bearish domestic and overseas steel markets kept demand for imported scrap limited.
Fresh offers for bulk Japanese H2 were at $485-490/t CFR Vietnam, falling marginally by $2-3/t w-o-w. However, a few bids were heard to be lower by $10-15/t to the quoted offers.
Meanwhile, Japanese suppliers resisted lowering the offers further.
Ferrous scrap imports up m-o-m
Vietnam’s ferrous scrap imports were at 0.4 mn t in Nov’21, up 18% m-o-m against 0.34 mn t in October, registering a four-month high. Japan was the largest supplier with 170,000 t, followed by USA and Hong Kong with 90,000 t and 60,000 t, respectively. However, on a y-o-y basis, import volumes have fallen by 23% from 0.52 mn t in Nov’20.
Domestic scrap prices unchanged
Domestic ferrous scrap prices in Vietnam remained unchanged towards the close of last week, as per the latest update received from a market source. The procurement prices of H1 and H2 grades were at VND 10,700/kg ($465/t) and VND 10,400/kg ($452/t), respectively.
Finished steel sales drop, production up in Nov
Vietnam’s finished steel sales declined 14% m-o-m to 2.3 mn t in Nov’21, according to data released by the Vietnam Steel Association. However, finished steel production increased marginally to 2.9 mn t in Nov’21. Rising production and falling sales are likely to weigh down sentiments for imported scrap bookings.
Overview of other South East Asian markets
- Thailand: Imported scrap offers to Thailand for HMS 1 and 2 (80:20) from Central America remained mostly stable at $415-418/t CFR.
- Indonesia: PNS from the UK were heard at around $520/t CFR Jakarta levels, towards the middle of last week.
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