Vietnam: Imported scrap prices drop by up to $10/t w-o-w amid tariff-related uncertainties

• Strengthening JPY prevents drop in Japanese H2 offers
• Mills actively book imported scrap following price drop

Vietnam’s imported scrap prices declined by up to $10/tonne (t) w-o-w, although steel mills actively booked material amid ongoing bearish sentiment stemming from tariff-related uncertainties.

Bids for bulk HMS 80:20 were mostly heard at $340-345/t CFR Vietnam, while deal estimates ranged within $345-350/t. This marks a $5-10/t drop from the prior week’s level of $350-360/t.

Weekly assessments

• US-origin HMS 80:20 deep-sea bulk cargoes were assessed at $350/t CFR, down by $10/t w-o-w.
• Japanese H2 edged down by $2/t w-o-w to $330/t CFR Vietnam.

Recent deals:

• A 10,000-t cargo, comprising heavy scrap (HS) and Shindachi mix, was sold at $360-362/t CFR Vietnam.
• A deal for US-origin HMS 80:20 (40-ft containers) was concluded at $300-305/t CFR Vietnam.
• A cargo comprising HMS 80:20 at $347-348/t and PNS at $357-358/t was reportedly sold to Vietnam.

Market commentary

Early last week, domestic scrap offers were more competitive than imported material, which prompted mills to prefer local sources for their procurement needs. However, as imported offers declined, mills increasingly started sourcing deep-sea material.

As per a source from the Japanese scrap supply side, HS export offers to Vietnam were at $369-370/t CFR.

Even some market participants attributed the increased buying interest to more attractive pricing following a sharp drop in Turkish benchmark scrap prices.

According to market insiders, H2 offers remained steady w-o-w at $330-335/t CFR, as Japanese suppliers looked to minimise losses in JPY terms. The JPY appreciated, marking its highest level since October 2024, which provided Japanese suppliers with limited elbow room to reduce their offers.

A Vietnam-based mill source stated, “With H2 offers remaining high, some mills may reduce purchases or explore alternative sources. Everyone is also waiting to gauge the full impact of the recent US policy changes.”

Domestic market

Domestic scrap prices were as follows last week:

• VND 8,600-9,000/kg (approximately $358-375/t) delivered to northern region mills, excluding VAT.
• VND 8,050-8,550/kg (approximately $335-356/t) delivered to southern region mills, excluding VAT.

Moderate demand was seen, as contractors resumed operations post-March, while inventory levels at mills remained average, according to a local trader. “However, bids hovered lower, at around $325/t CFR Vietnam, reflecting a notable gap from offers. Buyer’s workable values were indicated at $322-323/t CFR,” a source stated.

Rebar prices remained stable, but falling billet tags made mills cautious, limiting their appetite for further raw material or scrap purchases.

Outlook

Sources noted that the recent drop in imported scrap prices in Vietnam may lead to mills increasingly favouring overseas material over local supplies.