Vietnam, South East Asia’s largest scrap buying country, has recorded ferrous scrap imports of 0.49 mnt in May 2022 against 0.43 mnt a month ago, an increase of 14% m-o-m. Shipments to Vietnam increased as mills raised their bids in order to secure fresh inventory.
Market sentiments were positive due to improved finished steel demand in the domestic and overseas markets. Increased steel consumption, coupled with new infrastructure projects, involving civil construction, supported scrap imports.
Notably, on a y-o-y basis, the country’s imports fell by 30% from 0.62 mnt in May 2021, as per data maintained with SteelMint.
Country-wise shipments-
- Imports from Japan stable: Japan remained the top ferrous scrap supplying country with 0.16 mnt in May, largely stable m-o-m. However, shipments saw a fall of 43% from 0.28 mnt in the same period last year.
- Hike in imports from USA: The US exported 0.14 mnt in May, a significant increase of 75% against 0.08 in the previous month. Vietnam buyers found US scrap to be more cost-competitive over domestic material. In addition, increasing freight rates from other scrap sourcing countries also encouraged buyers to book more US scrap.
- Imports from Australia, Singapore up: Vietnam’s imports from Australia were at 0.07 mnt in May over 0.04 mnt in the previous month, higher by 75% m-o-m.
Meanwhile, imports from Singapore were up by around 5% to 0.03 mnt in May, SteelMint data showed.
Outlook
Market participants expect that demand from buyers and end-users may remain limited in the upcoming month due to subdued end-user steel demand from EU and lack of price clarity in the overseas markets amidst a week-long Labour Day holiday.
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