- Vietnam’s imported scrap market picks up after Tet
- 2025 construction projects spark demand optimism
The Vietnamese imported scrap market saw a $5/tonne (t) increase last week, following a period of stability, as key buyers returned from the holidays and market activity picked up.
Japanese bulk H2 scrap was offered at $315-320/t CFR Vietnam, reflecting a $5-10/t rise from the previous week. Bids also increased to around $310-312/t CFR Vietnam, which is equivalent to approximately JPY 40,200-40,600/t ($264-267/t) FOB Japan, including freight costs.
Some mills reported having adequate inventory levels due to restocking before the holidays, while others expect demand to recover, driven by reduced shipments to Vietnam in January and limited procurement activity prior to that.
CFR assessments
- Deep-sea bulk US HMS (80:20) cargoes were assessed at $345/t, up by $5/t w-o-w.
- Japanese-origin H2, a key tradable grade in Vietnam’s scrap market, increased by $5/t to $320/t CFR Vietnam.
Market commentaries
HS offers were quoted at $345-350/t CFR Vietnam, but buying interest remained subdued due to a persistent gap between bids and offers.
A mill participant in Vietnam stated, “We’ve just returned from the Tet holidays and are awaiting China’s market response today to adjust our bid levels. Suppliers are in a similar situation.”
Another Vietnam-based trader noted that suppliers are hesitant to sell cargo to Taiwan, as they can secure higher prices in other markets, causing them to reject lower offers.
A Vietnam-based importer mentioned, “One of our vessels was scheduled to ship in February, but it will likely be delayed until March due to ongoing port congestion in Japan. We are hopeful the situation will improve by then.”
Vietnam prepares for potential global trade war
Vietnam’s Prime Minister has instructed his Cabinet to prepare for a potential global trade war after US tariffs on Chinese goods. The country faces economic risks, particularly in exports, production, and supply chains, as it relies heavily on trade with China and the US. The tariffs could also lead to higher costs, reduced consumer purchasing power, and shifts in regional trade patterns.
Outlook
The outlook for downstream demand in Vietnam remains positive, with several market sources expressing optimism for the coming year. This optimism is driven by the anticipated launch of several major construction projects in 2025.
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