- Weaker yen pushes up procurement costs of Japanese scrap
- Buyers stay on sidelines after Bangladesh secures Kanto tender
Imported ferrous scrap prices in Vietnam showed a slight w-o-w increase, supported by favourable currency movements, as a weaker yen pushed up procurement costs for Japanese scrap.
However, trading activity in Vietnam remained subdued, as the recent Kanto tender was awarded to Chattogram, leaving local buyers largely on the sidelines. Market participation was further dampened by storms and heavy rainfall in northern and central regions.
Weekly assessments
- Japanese H2 scrap was at $321/t CFR, up by $2/tonne (t) w-o-w.
- US-origin HMS 80:20 bulk stood at $342/t CFR Vietnam, up by $2/t w-o-w.
Market updates
A mill-side participant stated, “The market needs time to recover; we will have to wait and see how it unfolds in the coming days.”
Additionally, another mill source stated that the ongoing rainy season and storms have slowed construction activity, further dampening demand.
A market participant observed that Japanese H2 offers rose marginally w-o-w to $325/t CFR, with indicative bids at $320/t CFR. Meanwhile, US-origin deep-sea bulk HMS 80:20 mix offers were at around $350/t CFR, up $3-4/t from last week’s $345-348/t range, but bids remained low.
Trading activity in Vietnam’s scrap market was muted last week, hampered by sluggish demand and recent weather disruptions in the northern and central regions.
HS offers in Vietnam remained unchanged w-o-w at $355/t CFR, while bids were recorded at $345/t CFR.
Additionally, floods in Vietnam have severely impacted the economy, causing an estimated $1.4 billion in damages and disrupting agriculture, infrastructure, and essential services as of October 2025.
Outlook
Near-term market sentiment is expected to remain cautious, with buyers likely to maintain a wait-and-watch stance while closely monitoring Chinese market movements and domestic weather conditions.
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