Vietnam: Imported scrap prices dip as weak VND, poor demand drive sellers to alternate markets

• Dong slides following US reciprocal tariffs
• Vietnam to eliminate tariffs on US goods

Vietnam’s imported scrap prices edge down by $6/tonne (t) w-o-w, amid weak buying interest, as most suppliers were reportedly shifting their focus toward the Bangladeshi market.

Following the reciprocal tariff announcement, the Vietnamese dong (VND) depreciated sharply, eroding purchasing power and prompting buyers to lower their price indications to below $360/t CFR for imported scrap from the US.

CFR assessments

• US-origin HMS 80:20 deep-sea bulk cargoes were assessed at $362/t CFR, down by $6/t w-o-w.
• Japanese H2 scrap edged down by $6/t w-o-w to $330/t CFR Vietnam.

HS scrap offers to Vietnam initially surfaced at $370/t CFR but later rose to around $375/t CFR, supported by a stronger Japanese yen (JPY) against the US dollar after the reciprocal tariff announcements.

According to market participants, H2 scrap offers to Vietnam weakened this week to $335-340/t CFR, down from last week’s $335-345/t.

Vietnamese mills placed buying indications at $330-335/t CFR, although overall demand remained subdued. Meanwhile, workable levels for US-origin HMS 80:20 deep-sea cargoes fell by $5/t w-o-w to around $360/t CFR.

Hoa Phat increases HRC prices for May sales

Vietnamese steel major Hoa Phat Group has increased its monthly HRC (SAE1006, non-skin-passed) prices by around $6/t for May’25 shipments. Post-revision, prices are approximately at $523/t (VND 13,497,570 /t) against $517/t for the southern region in April, excluding VAT. The price adjustment is primarily a consequence of the preliminary anti-dumping duties imposed on Chinese HRCs last month.

Vietnam to drop tariffs on US imports amid trade tensions

Vietnam has offered to eliminate all tariffs on US imports after President Trump announced a 46% reciprocal tariff on Vietnamese goods. In a letter dated 5 April, Vietnamese party chief Lam urged the US to delay the new tariffs and avoid further escalation. Trump called their conversation “very productive” and noted that 50 countries are eager to strike similar deals.

Outlook

The near-term outlook remains cautious. Currency weakness and limited domestic demand continue to pressure scrap buying interest. However, any fiscal stimulus or trade resolution in the coming weeks, particularly surrounding US-Vietnam negotiations, may offer limited support to market sentiments.