Vietnam: Scrap prices edge up by $2/t w-o-w despite cautious buying, currency pressures

• Bid-offer disparities continue to restrict trading activity
• Mills plan scrap inventory build-up after Lunar New Year

Vietnam’s scrap prices edged up by $2/tonne (t) w-o-w despite cautious market sentiment and currency pressures limiting deals. Bullish expectations regarding future prices drove up spot rates, as general scrap demand in Vietnam is expected to increase in the near term, with some mills planning to build up their inventories following the Lunar New Year. Suppliers remained optimistic about price rises after the Lunar New Year, keeping offers firm; however, persistent gaps between bids and offers restricted trading activity.

Weekly assessments

• Japanese H2 scrap was at $322/t CFR Vietnam, up by $2/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

Overall, Vietnam’s imported scrap market remained cautious despite a slight improvement in sentiment, as both prices and demand are expected to edge higher in the near term following the Lunar New Year. Indicative bids were heard at $322/t CFR Vietnam, while tradable levels were assessed at $324-325/t.

Unfavourable currency exchange rates continued to limit deal-making, as sellers and buyers struggled to bridge price gaps. Market participants stated that exchange rate pressures prevented both sides from accepting each other’s targets.

Looking ahead, scrap demand, including for H2, is expected to improve as some mills plan to rebuild inventories ahead of possible post-Lunar New Year price increases. However, sentiment remains mixed.

US-origin HMS 80:20 offers stayed flat at $350/t CFR, with bids steady at $335/t. Suppliers maintained firm price expectations, though these levels remain unworkable for most buyers.

Domestic updates

In southern Vietnam, domestic HMS scrap with 3-6 mm thickness was heard at VND 7,900-8,700/kg delivered to mills, excluding VAT, reflecting relatively softer demand in the region.

In northern Vietnam, domestic HMS scrap bids were higher at VND 8,550-9,400/kg delivered to mills, excluding VAT, supported by comparatively stronger regional buying interest.

Outlook

Vietnam’s scrap market is likely to remain cautious in the near term, with currency pressures limiting transactions. Demand may improve after the Lunar New Year as mills rebuild inventories, but price gaps between buyers and sellers are expected to persist.