Vietnam: Imported scrap prices soften by $2/t w-o-w amid weak rebar sales

• Muted spot liquidity amid persistent wide bid-offer gaps
• Typhoon flooding continues to suppress downstream steel demand

Vietnam’s imported ferrous scrap softened to $326/t on 24 November, down $2/t w-o-w, due to weak rebar demand, seasonal weather disruptions, and cautious procurement by mills. Stocks remain low in the spot market, with buyers refraining from major bookings while evaluating cheaper alternatives, and managing comfortable inventories. A recent depreciation in the Japanese yen offered mild support, but it was insufficient to offset broader demand weakness.

Weekly assessments

Japanese H2 scrap was at $326/t CFR, down by $2/t w-o-w.
US-origin HMS 80:20 bulk stood at $346/t CFR Vietnam, down by $2/t w-o-w.

Market updates

H2 offers softened to between $325-330/t CFR, while bids slipped to about $320/t CFR. However, tradeable levels were indicated at between $320-325/t CFR. US-origin HMS 80:20 offers firmed to $355/t CFR, while bids remained at between $340–342/t CFR. Sellers pointed to workable levels around $350/t CFR, but buyers held closer to $345/t, resulting in limited trading activity.

Mills remained cautious heading into the New Year, with a trader noting that buyers are actively bargaining and seeking cheaper alternatives.

“A major mill had built sufficient stocks and was not in a hurry to procure more,” said a Vietnam-based trader.

Severe flooding in central Vietnam continued to impact rebar demand, limiting mills’ appetite for imported scrap.

Domestic updates

Domestic scrap demand remained steady but lack-lustre, with most mills preferring prompt local deliveries given weather-related port delays, and lower logistics risks. Buyers continued to replenish in small volumes, maintaining lean inventory strategies.

Outlook

The near-term outlook remains soft ($2-3/t), with continued weather disruptions, weak construction demand, and cautious inventory management likely to any uptick in prices. Mills are expected to prioritize smaller, opportunistic purchases while monitoring currency movements and freight trends. Although a softer JPY may limit further downside for Japanese offers, broad market demand sentiment is expected to stay subdued until steel demand shows clearer signs of recovery.