Vietnam: Scrap import prices stable w-o-w even as market awaits demand surge after monsoon

• Domestic demand weak during monsoon 
• Demand resurgence expected post-holidays 

Imported ferrous scrap prices in Vietnam remained stable w-o-w with low market activity and muted demand from the downstream sectors ahead of the holidays.

Market participants reported that steel production and construction activity remain steady despite the holidays (Vietnam will mark the 80th anniversary of the August Revolution and National Day). A Hong Kong H2 scrap lot of around 3,000 t was reportedly sold at $305/t CFR Vietnam.

Weekly assessments

• Japanese H2 scrap sold at $313/t CFR, with prices reported stable w-o-w.
• US-origin HMS 80:20 bulk stood at $333/t CFR Vietnam, stable w-o-w.

Market updates

A trader noted that the recent rise in H2 offers was heard with prices firm at $320-325/t CFR Vietnam, up $5/t w-o-w, while bids stayed firm at $310-315/t.

A trader noted that the market was stable, with demand expected to rise after the rainy season, and several sources anticipating activity to pick up around mid-September.

Offers for US-origin deep-sea HMS 80:20 increased to $340-350/t CFR Vietnam, up $10/t from last week’s $335-345/t, while bids remained steady at $325-330/t.

Domestic market

A Vietnamese trader reported that scrap demand has picked up slightly but remains weak in the northern and southern regions due to the rainy season.

The increase in billets and finished products will boost market competition; the impact on demand for higher-grade scrap is expected to remain limited.

HS scrap demand has increased following Hoa Phat’s blast furnace restart, though another trader noted that the impact on higher-grade scrap could be less than expected.

Outlook

Market activity is expected to remain steady in the near term, with demand gradually picking up post-holidays and after the rainy season, particularly for low- to mid-grade scrap.