Vietnam, a major consumer of ferrous scrap in Southeast Asia, recorded imports of 193,250 tonnes (t) in January 2022 against 193,470 t in December. Volumes were largely stable, down by a mere 0.1% m-o-m.
Notably, the January 2023 volumes are the lowest seen after July 2022.
The country’s scrap imports rose 18% y-o-y compared to 163,410 t in January 2022.
Vietnam’s steel exports for the month of January dropped by 26% to 0.58 mnt as compared to 0.78 mnt in December 2022. Persistent inflation and high-interest rates have weighed on the real estate business, and demand for finished products in construction is weak. As a result, steelmakers have reduced domestic finished steel production. Hence, scrap imports are possibly stable m-o-m.
Country-wise shipments
- Imports from Japan increase: Vietnam imported 90,134 t from Japan in January, a rise of 28% as against 70,298 t in December. Similarly, import volumes increased drastically by 230% y-o-y from 27,284 t in January 2022.
- Imports from Hong Kong down m-o-m: Export volumes to Vietnam from Hong Kong saw a decline in January at 21,350 t as against 30,090 t in the previous month, down by 29% m-o-m. Shipments also decreased by 6% from 22,817 t in the same month last year.
- Imports from the US up m-o-m: Vietnam’s imports from the US were at 47,007 t in January, a recovery of 55% from 30,248 t in December 2022.
Outlook
Import quantities are likely to fall further as prices for HMS (US-origin) and H2 (Japan-origin) scrap climb up in February 2023, thereby affecting Vietnam’s overall forthcoming bookings. Furthermore, a few trade channels said that material shortages in major supplying countries such as the United States may keep scrap prices firm.
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