- Buyer sentiment stayed cautious at year start
- Thin trading due to year-end participant absences
Vietnam’s ferrous scrap market saw a subdued start to the new year, as year-end holidays kept most buyers and sellers away, resulting in thin trading and limited price movement. Market participants expect activity to gradually resume once operations restart next week.
Weekly assessments
- Japanese H2 scrap was at $325/t CFR Vietnam, up by $1/t w-o-w
- US-origin HMS 80:20 bulk stood at $345/t CFR Vietnam, stable w-o-w
Market updates
Japanese-origin scrap trade was muted due to holiday absences. H2 scrap offers were reported at $325-330/t CFR, with bids clustering near $320/t CFR. Participants indicated that bookings, if any, would likely conclude around $320-325/t CFR.
The deep-sea scrap segment remained largely stable. US-origin HMS 80:20 bulk offers were heard at $345-350/t CFR, while bids hovered around $340-345/t CFR. Market participent stated “workable deals were more likely near the lower end of the range, reflecting cautious buyer sentiment at the start of the year.”
Vietnam’s Vingroup has entered the steel sector by establishing VinMetal JSC, committing about VND 10 trillion ($379 million) to build a 5 mnt/year high-tech steel complex in Vung Ang, Ha Tinh. The plant will produce construction steel, automotive and high-strength sheet, alloy steels, and rail products, targeting domestic infrastructure needs while promoting greener, low-carbon steelmaking and reducing import dependence.
Outlook
Vietnam’s scrap market is expected activity to gradually pick up next week as buyers and sellers return from holidays. Until then, cautious buying and adequate inventories are likely to keep prices range-bound in the near term.
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