Vietnam, South East Asia’s largest ferrous scrap buyer, recorded 0.43 mnt of ferrous scrap imports in April 2022 against 0.29 mnt a month ago, a significant hike of 48% m-o-m, as per SteelMint’s customs data.
Imports rebounded amidst a lower base in March 2022 due to Covid. Also, steel demand in Vietnam is gradually recovering with resumption of several construction and infrastructure projects, especially the large public investments.
However, on a y-o-y basis, the country’s imports fell by 22% from 0.55 mnt in April 2021.
Country-wise imports
- Imports from Japan up despite higher prices: Vietnam’s scrap imports from Japan stood at 0.16 mnt in April, a sharp rise of 60% against 0.1 mnt in March.
Despite surging offers of Japanese scrap that have even hit all-time high in the past few months, imports remained high. Buyers had no choice as they need to book Japanese material at any cost owing to its premium quality and traditional suppliers.
- Imports volumes from USA rise: A major volume of 0.08 mnt was imported from USA, increasing by 33% m-o-m in April against 0.06 mnt in previous month. Imports picked up as demand for steel products recovered post-Covid.
- Imports from Hong Kong, Australia bounce back: Vietnam’s imports from Hong Kong were at 0.05 mnt in April, up by 25% m-o-m.
Surprisingly, imports from Australia shot up by 1,155% to 0.04 mnt in April from 3,584 t in March, SteelMint data showed.
Outlook
Vietnam imported scrap market may remain subdued due to bid-offer disparity and follow the global trend. The Golden Week holidays in Japan could also impact the market trend.
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