- Vietnamese mills increase scrap imports as local prices rise
- Domestic steel demand set to strengthen in coming months
Vietnam’s imported scrap prices rose by $3/t w-o-w, supported by higher buying interest following a domestic price increase.
As scrap prices in southern Vietnam increased, some mills were reportedly looking to restock both domestic and imported material.
A Japan-based trader said that with Taiwan showing no buying interest and South Korea’s bids remaining too low, Vietnam is the most likely destination for exports.
Indicative H2 offers to Vietnam increased to $325-330/t CFR, with tradable levels at around $320/t CFR. US-origin deep-sea cargo offers rose to $365-370/t CFR Vietnam, while bids for open-origin cargoes stood at $345/t CFR.
However, deep-sea spot liquidity remained limited due to a persistent bid-offer gap and subdued buying interest, keeping buyers on the sidelines.
CFR assessments
- Deep-sea bulk US HMS (80:20) cargoes were assessed at $355/t, up by $3/t w-o-w.
- Japanese-origin H2, a key grade in Vietnam’s scrap market, increased by $3/t to $325/t CFR Vietnam.
Market comments
HS-grade scrap prices increased steadily this week, supported by higher tradeable levels in Vietnam.
A market participant said, “Vietnamese mills showed greater interest in imports due to rising domestic scrap and steel prices.”
Another Vietnam-based millside participant noted that margins remain tight despite slight market improvements, as scrap prices are rising faster than steel prices.
Hoa Phat Group, the leading industrial manufacturing group, raised Apr’25 HRC (SAE1006, non-skin-passed) prices by $11/t to $517/t (VND 13,247,554/t) for the southern region, excluding VAT. The hike follows reduced Chinese imports amid Vietnam’s anti-dumping duties.
India postpones antidumping hearing on Vietnamese HR flats
India’s DGTR postponed the January anti-dumping hearing on HR flat steel imports from Vietnam due to “official exigencies,” with a new date yet to be set. The investigation covers steel under HS codes 7208, 7211, 7225, and 7226. Meanwhile, India extended BIS certificates for Formosa Ha Tinh and approved BIS for Hoa Phat HRC, while Vietnam opted not to impose temporary AD on Indian HRC.
Vietnam seeks Chinese investment in green & industrial sectors
Vietnam’s PM urged Chinese firms to expand investment in infrastructure, clean energy, and industrial zones, highlighting the country’s 8% GDP growth target for 2024 and its stable economic outlook. Chinese investors, having already committed over $6 billion in green and renewable sectors, praised Vietnam’s business environment and expressed interest in further projects in the digital economy, manufacturing, and high-tech industries. Both sides pledged stronger cooperation in trade, technology transfer, and industrial upgrades
Outlook
Market participants hold mixed views on near-term pricing, but many anticipate stronger growth in Q2, driven by increased construction activity and government-backed projects. Imported scrap prices are expected to stay firm, aligning with global scrap market trends.
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