Vietnam: Imported scrap prices hold steady w-o-w as mill inquiries remain limited

• Wide bid-offer disparities, thin liquidity hinder trading
• Domestic scrap currently meets only 20% of mill demand

Imported ferrous scrap prices in Vietnam remained largely stable w-o-w. Participants indicated that market fundamentals in the deep-sea bulk scrap segment showed minimal change from last week, with supply, demand, and price trends remaining steady.

Buyers mostly adopted a wait-and-watch approach, keeping bids unchanged and inquiries limited. Meanwhile, Japanese suppliers provided limited updates following their return from the Autumnal Equinox holiday.

Weekly assessments

• Japanese H2 scrap was at $319/t CFR, falling by $1/tonne (t) w-o-w.
• US-origin HMS 80:20 bulk stood at $340/t CFR Vietnam, stable w-o-w.

Market updates

A Vietnam-based trader said, “Demand for H2 is stable to rising.” The deep-sea bulk scrap market remained steady, with a wide gap in buyer-seller expectations. US-origin offers were at $350/t CFR and bids at $340/t amid thin liquidity.

A Vietnam-based trader noted that demand for imported scrap was stable despite local mills favouring domestic material, while the wide bid-offer gap hindered deal closure.

A market participant observed that Japanese H2 scrap offers were steady at JPY 41,500-42,000/t ($279-283/t), translating to a CFR range of $320-325/t for Vietnam. Market sentiment was cautious, with buyers maintaining a wait-and-watch stance amid stable supply and limited fresh deals.

According to a major Japanese exporter, a Vietnam-based trader stated that domestic scrap currently satisfies only around 20% of demand, forcing mills to depend on imported material to meet their full feedstock requirements.

HS scrap offers in Vietnam were quoted at $350-355/t CFR, unchanged from the previous week, while buyers placed lower bids near $345/t CFR.

Outlook

Near-term restocking is expected, supported by steady H2 demand and the price advantage of H2 scrap over more expensive deep-sea bulk cargoes. Sentiment remains cautious as buyers await further clarity before committing to deals.