- Weak sentiment keeps mills on sidelines
- H2 demand fades as rainy season approaches
Imported ferrous scrap prices in Vietnam recorded a marginal rise of $2/tonne (t) w-o-w, but overall sentiment remained muted due to weak steel demand and ongoing currency pressure. The depreciation of the Vietnamese dong (VND), followed by sluggish billet prices and soft downstream demand, continued to weigh on trading interest.
Weekly assessments
- Japanese H2 was assessed at $325/t CFR, up by $2/t w-o-w.
- US-origin HMS 80:20 bulk was assessed at $340/t CFR Vietnam, up by $2/t w-o-w.
Market commentary
A mill-side participant stated that offers for Japan-origin H2 Vietnamese buyers were targeting Japanese H2 scrap at $310-320/t CFR, but suppliers held firm with offers at $320-330/t.
Meanwhile, offers for US-origin HMS 80:20 bulk cargoes were reported at $345-350/t CFR Vietnam last week, while buying bids held firm at $335/t CFR.
A Vietnam-based mill source noted that US-origin offers have limited room for negotiation, and sentiment around US scrap prices remains strong, indicating firm seller positions despite subdued buying interest.
A Vietnam-based trader observed that H2 scrap prices remain under pressure as mills increasingly prefer heavier grades, though demand for H2 persists–Vietnamese buyers are still open to Japanese or containerised H2, but only if prices align with their expectations.
Domestic market scenario
As per market sources, a leading steelmaker cut its rebar prices by VND 200/Kg ($8/t) this week, signalling softening demand in the downstream market.
US tariff deadline weighs on trade
The 46% US tariff, set to expire in under three weeks, has triggered several rounds of talks, the latest held on 19 June, according to Vietnam’s Ministry of Industry & Trade. At the same time, the weaker dong is making dollar-priced imports more costly, further dampening buying interest.
Currency slide dampens outlook
Vietnam’s dong (VND) fell to a record low of 26,118 per US dollar, down from 25,953 a month ago. The currency has declined over 2% since January, making it one of Asia’s worst performers in 2025.
Market sentiment has pressured the Vietnamese dong amid the recent escalation in the Iran-Israel conflict and ongoing uncertainty over potential US tariffs on Vietnamese exports.
Outlook
In the near term, the continued weakness of the currency might limit demand for imported scrap and keep prices relatively stable. Some market sources maintain a slightly bearish view for H2 scrap, particularly with the upcoming rainy season expected to further soften demand. A trader observed, “Some mills see no reason to raise their bids for imported scrap.”
Leave a Reply