Vietnam’s imported scrap trade yet to improve on sluggish interest from end-users

Vietnam’s imported scrap trade remained subdued on the back of sluggish demand from end-users. Meanwhile, the subsequent increase in imported scrap offers slowed down the trade, and hence market activities remained absent throughout the week.

On the other hand, buyers and steel mills were waiting for Japan’s Kanto tender outcome, which concluded on 9 September. Around 15,000 tonnes of scrap were awarded to Bangladesh and the average price for H2 scrap stood at around JPY 51,040/t ($357/t) FAS, SteelMint learnt from sources. Prices rose to JPY 8,979/t ($62/t) from JPY 42,062/t ($294/t) in August. Notably, prices have moved up to a three-month high on increased bids, as per SteelMint data.

Vietnamese buyers’ bid prices failed to meet the expectations of suppliers, considering the sharp hike in bid prices.

Indicative offers for Japanese bulk H2 scrap heard at $420-430/t CFR Vietnam. However, workable levels remained at $415/t CFR.

On the other hand, no firm offers wereheard for US-origin bulk HMS.

Vietnam’s billet export offers unchanged: Vietnam’s BF-grade billet export offers stood stable w-o-w at around $530/t FOB. According to market sources, demand for semi-finished steel remained subdued in the region. However, increased scrap prices supported billet offers.

Ferrous scrap imports rebound in August: Vietnam imported 280,714 t of ferrous scrap in August, a 59% m-o-m rise as against 176,764 t a month ago, as per data maintained with SteelMint. Japan continued to be the largest exporter at 121,196 t followed by the US and Hong Kong at 69,880 t and 48,115 t respectively. On a y-o-y basis too, the country’s imports fell by 14% from 327,190 t in August 2021.

Overview of other SE Asian scrap market

• Taiwan: Taiwan’s imported scrap prices for US-origin HMS 1&2 (80:20) scrap at $380/t CFR Taichung, whereas, shredded from Australia and New Zealand origin was at $410/t CFR levels.
• Thailand: Imported scrap offers to Thailand from Central America origin was at $310/t CFR levels, slightly down w-o-w.

Outlook: Vietnam’s imported scrap market is expected to exhibit mixed trends, with Japanese suppliers less interested in lowering their offers. Additionally, mills may remain cautious amid dull finished steel demand.