Vietnam: Bulk scrap import prices witness modest rise; activities slow ahead of Tet holidays

• Bid-offer gap seen ahead of Tet holidays
• Few mills acquire cargoes, but not in hurry

The Vietnamese imported scrap market saw a $5/tonne (t) increase last week despite the fact that Vietnamese buyers are mostly absent from the market ahead of the Tet holidays.

Japanese bulk H2 scrap was offered at $315-320/t CFR Vietnam. Weak demand for long products ahead of the holidays and sufficient inventories led Vietnamese mills to adopt a wait-and-see approach.

Meanwhile, vessel availability for shipments has improved, with better access and more competitive Japan-Vietnam freight rates, according to market sources.

CFR assessments

• Deep-sea bulk US HMS (80:20) cargoes were assessed at $340/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 $315/t CFR Vietnam.

Market commentaries

Market activity was mostly quiet ahead of the Vietnamese Tet holidays, from 25 January to 2 February, with some participants already stepping back.

HS offers were quoted at $350/t CFR Vietnam, with bids at $340/t, reflecting an increase of $5/t from the previous week. Due to a persistent bid-offer gap and weak demand, some suppliers refrained from offering, while downstream seaborne buyers turned to more competitively priced Japanese-origin scrap alternatives.

A mill-side participant in Vietnam commented, “A few mills are acquiring cargo, but there is no rush. Deals could be made if prices are attractive. Otherwise, they may delay restocking until after the holidays.”

A market participant said that US-origin HMS (80:20) bulk scrap was offered at $345-350/t CFR, reflecting a slight increase due to stronger international market sentiment, particularly in Turkiye. However, Vietnamese buyers were only willing to purchase US material at prices below $340/t CFR.

Domestic market

Construction activity and downstream demand in Vietnam slowed ahead of the holidays, with some local projects put on hold, leading to weaker scrap demand. As a result, mills kept offers for rebar and wire rods stable.

A market participant said, “We plan to return to the market on 3 February, and I expect a gradual recovery to begin by then.”

In Vietnam’s domestic market, a leading northern region mill lowered its purchasing price for 1.5 mm scrap by VND 100/kg ($4/t) to VND 9,100/kg ($363/t) DDP.

A Vietnam-based trader noted, “It is neither a buyer’s nor a seller’s market right now; it is more of a neutral situation. The price trend after the holidays is uncertain, so we will adopt a wait-and-see approach.”

Outlook

The outlook remains cautious as Vietnamese mills and traders await post-holiday developments. However, optimism persists for a gradual recovery in 2025, supported by a robust project pipeline and a steady flow of planned implementations.

In the near term, market sentiment remains mixed, with participants closely monitoring US and Chinese policy directions for further clarity on market trends.