Vietnam: Imported bulk scrap prices rise by up to $6/t w-o-w following rise in Kanto tender bids

• Kanto tender boosts sentiment, but deals scarce
• Freights ease amid availability of more vessels

Vietnam’s imported scrap prices rose by up to $6/tonne (t) w-o-w, supported by improved spot market sentiments following the Kanto tender as suppliers held firm on their offers despite a continued bid-offer gap.

Despite the increase in offers post-Kanto tender, Vietnamese mills remained cautious, viewing current price levels as too high to engage in near-term purchases.

Scrap prices in Vietnam also drew support from the recent rise in finished steel prices and expectations of strong construction demand tied to government infrastructure projects in 2025. However, demand from the property sector remained relatively subdued.

Meanwhile, Japan-Vietnam freight rates edged down slightly over the week, driven by better vessel availability, smoother loading operations at Japanese ports, and lack of congestion, according to market participants.

CFR assessments

• Deep-sea bulk US HMS 80:20 cargoes were assessed at $365/t, up by $5/t w-o-w.
• Japanese-origin H2, a key grade in Vietnam’s scrap market, increased by $6/t to $336/t CFR Vietnam

Market comments

Indicative offers for Japanese H2 scrap to Vietnam climbed to $340/t CFR, up from the previous $330-335/t range, while bids stayed steady at around $330/t CFR. US-origin deep-sea scrap offers remained unchanged w-o-w at $360-365/t CFR Vietnam. For open-origin cargoes, bids hovered near $340/t CFR, with sellers’ tradable levels reported between $350-355/t CFR.

According to market insiders, a 15,000-t cargo was bound for Bangladesh for the fourth month in a row and Vietnamese mills may find it difficult to compete with the tender price.

HS offers were heard at $360-370/t CFR Vietnam this week, but spot liquidity stayed thin amid a wide bid-offer gap.

A trader said that, “Due to the high prices of deep-sea scrap, mills are showing a preference for HS-grade material, which provides better quality at comparable prices and allows for smaller-volume purchases.”

Another trader informed: “With Taiwan retreating from the market, Vietnam has moved in to pursue the cargoes Taiwan left behind.”

As demand for deep-sea scrap remains weak in both Vietnam and South Korea, some suppliers are shifting their focus to more competitive markets like Bangladesh, India, and Turkiye.

Outlook

A Vietnam-based trader noted that prices are unlikely to rise soon due to ongoing challenges faced by mills and it typically takes one to two weeks for offers to gradually align with buyer’s target levels.