Vietnam, a significant consumer of ferrous scrap in South East Asia, recorded imports of 283,490 tonnes (t) in October against 321,170 t in September, down by 12 % m-o-m.
Scrap imports are down due to lower shipments from the nation’s major suppliers, with the exception of Japan and Australia, following the low demand for finished and semi-finished products in the local and export markets of Vietnam.
The country’s scrap imports dropped by 16% y-o-y compared to 337,179 t in October 2021. Similarly, total imports in January-October, 2022 stood at 3.22 million tonnes (mnt), a decline of 35% compared to the corresponding period of last year.
Country-wise shipments
- Japan top exporter: Japan was the top exporter to Vietnam at 166,553 t in October as against 123,515 t in the previous month, up 35% m-o-m. Shipments increased by 9% from 152,185 t in the same period last year as buyers showed interest in imported Japanese scrap due to cost-effectiveness.
- Imports from the US fall m-o-m: Vietnam imported 22,297 t from the US in October, a major decline of 67% m-o-m as against 67,120 t in September as price expectations were unfavourable for Vietnamese buyers from US suppliers. Similarly, on a y-o-y basis, import volumes decreased by 72% from 79,672 t in October 2021.
- Imports from Hong Kong decline: Vietnam’s imports from Hong Kong were at 26,029 t in September, a 13% fall from 29,908 t in September 2022.
Outlook
Participants expect the downward trend in scrap imports to continue in Vietnam in the near term since local mills have already begun to reduce output in order to clear stockpiles.
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