Vietnam: Bulk scrap import prices rise by up to $7/t w-o-w but buyers cautious amid dull construction demand

• Scrap prices up but weak demand limits buying
• Market awaits clarity on Vietnam’s HRC duty impact

Vietnam’s imported scrap prices increased this week, but buyer interest remained low due to weak finished steel demand.

Meanwhile, some Japanese ports faced congestion as shippers prioritised scrap collection to meet outstanding contracts amid limited supply, sources reported.

CFR assessments

• Deep-sea bulk US HMS (80:20) cargoes were assessed at $352/t, up by $2/t w-o-w.
• Japanese-origin H2, a key grade in Vietnam’s scrap market, increased by $7/t to $322/t CFR Vietnam.

Market update

HS offers in Vietnam were at $355-360/t, but weak buying interest and bid-offer gap prevented transactions.

A market participant said, “Japanese bulk H2 offers increased w-o-w to $320-322/t CFR Vietnam, while bids inched up to $315/t CFR Vietnam over last week, driven by currency fluctuations, but no transactions were reported. Meanwhile, US-origin HMS 80:20 was offered at around $360/t CFR, with no buyer interest.”

A Vietnam-based trader observed that construction activity remains sluggish post-holidays, impacted by unfavourable weather. “In the north, continuous rainfall over the past week has slowed construction and impacted longs demand. Despite this, mills have kept rebar and wire rod offers stable w-o-w, while billet prices saw a slight dip, with IF semis trading at VND 11,400/kg ($447/t) DDP.”

Vietnamese steelmaker Hoa Phat has secured BIS approval for IS 1079:2017 HRC, valid until 5 February, 2026, covering grades HR0, HR2, HR3, and ISH270C. The approved thickness ranges from 1.50-12 mm, with widths of 900-1,524 mm. Indian market participants see no immediate impact. Meanwhile, Formosa’s BIS certification was renewed until 4 December, 2025, but no confirmed bookings have been heard yet.

Vietnam’s Ministry of Industry and Trade has imposed anti-dumping duties of 19.38%-27.83% on HRC imports from China, effective 7 March, 2025, for 120 days. The decision follows a July 2024 investigation into unfair pricing concerns raised by domestic steel producers. The duties apply to specific HRC products, while imports from India are exempt.

In 2024, Vietnam’s steel imports surged 38% y-o-y to 18.63 mnt, with China accounting for 12.49 mnt, followed by Japan (2.32 mnt), South Korea (1.52 mnt), and India (0.24 mnt). The measure aims to safeguard Vietnam’s steel industry from market distortions and promote fair competition.

Outlook

Market participants expect a potential rise in interest for imported scrap in the short term, supported by expectations of improved demand in the longs market from March. However, demand remains contingent on weather conditions.

In the finished steel segment, buyers showed resistance to higher offers, preferring to adopt a wait-and-see approach. Looking ahead, sentiment on short-term spot pricing remains mixed, with traders closely monitoring tariff and anti-dumping policies, as well as China’s upcoming Two Sessions, for clearer market directions.