- Mills grapple with high scrap inventories
- Wide bid-offer gaps keep trade sluggish
Imported ferrous scrap prices in Vietnam fell by up to $3/tonne (t) w-o-w, as buyers showed little urgency to book material due to comfortable inventory levels.
A Vietnam-based trader noted that scrap prices remained under pressure, with subdued demand from Taiwan, South Korea, and Bangladesh diverting more supply into Vietnam.
Weekly assessments
- Japanese H2 scrap was at $313/t CFR, down $2/t w-o-w.
- US-origin HMS 80:20 bulk stood at $332/t CFR Vietnam, also down $3/t w-o-w.
Market updates
A trader stated, “Japanese sellers currently have few alternative outlets, and with Vietnam actively purchasing, a larger share of their scrap is being directed to the country, pushing offers lower.” Another trader added that this increased flow from Japan has contributed to the recent decline in offers.
H2 offers to Vietnam were heard at $310-315/t CFR, with indicative bids below $310/t CFR. A tradable level was confirmed at $310/t CFR. The same day, US-origin deep-sea offers stood at $345/t CFR, while bids ranged between $325-330/t CFR, leaving the bulk market sluggish amid a wide offer-bid gap.
Domestic market
A Vietnam-based mill source said construction activity is currently in its slow season, due to which buyers are preferring short-sea cargoes and domestic scrap instead.
In the southern region, domestic HMS (3-6 mm) bids were at VND 7,900-8,500/kg, delivered to mills and excluding VAT. In the northern region, bids stood at VND 8,350-9,100/kg, excluding VAT.
Vietnam steel output rises, exports face decline
Vietnam produced 16 million tonnes (mnt) of finished steel in H1CY’25, up 10% y-o-y, with domestic sales rising 10% to 15.7 mnt. Exports fell 13% y-o-y in volume and 23% in value to $4 billion amid weak prices and trade barriers. The Vietnam Steel Association (VSA) expects stronger domestic demand ahead, but the export outlook remains uncertain.
Outlook
Vietnam scrap prices are expected to stay under pressure as weak regional demand and inflows from Japan and the US persist. Domestic demand may lend support, but a wide bid-offer gap and soft steel exports could cap recovery.
Leave a Reply