South East Asia’s largest scrap buying country, Vietnam, recorded imports of 0.29 mnt of ferrous scrap in March 2022 against 0.31 mnt a month ago, a decrease of 6% m-o-m. The rising Covid cases and Tet holidays were the main reasons behind the subdued market and limited imports.
Furthermore, overseas scrap bookings dipped on high offers as buyers turned to domestic sourcing and were waiting for price clarity in the international market.
On a y-o-y basis too, the country’s imports fell by 47% from 0.55 mnt in March 2021, as per data maintained with SteelMint.
Country-wise imports
- Imports from Japan drop: Japan remained the top country after supplying 0.10 mnt of ferrous scrap in March 2022. However, shipments saw a downtrend of 23% in the same month.
Imports declined due to discrepancy in bids and offers as Vietnam mills showed less interest in booking at higher prices from Japan. So, they opted to wait and get a clearer picture of the market.
- Imports from US fall: The US exported 0.06 mnt in March 2022 which dropped significantly by 25% against 0.08 in the previous month. Due to supply chain bottlenecks and increasing prices, market participants booked only in small quantities.
- Imports from Hong Kong, Singapore stable: Vietnam’s imports from Hong Kong were at 0.04 mnt in March 2022, unchanged m-o-m. On the other hand, Singapore imports were also firm at 0.02 mnt in March 2022, SteelMint data showed.
Outlook
Market players believe that April shipments may not be higher due to the pandemic and the Russia-Ukraine war. Moreover, the mills need to raise their bids in order to secure fresh inventory for the upcoming month.
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