Vietnam: Imported ferrous scrap prices dip by $2/t w-o-w amid high inventories

• Mills’ inventories pressuring scrap prices
• HRC prices rise amid steady steel imports

Imported ferrous scrap prices in Vietnam edged down by $2/t w-o-w, as several mills opted to stay on the sidelines amid high inventory levels. With August cargoes already en route, some participants suggested that the latest Kanto tender prices may be difficult for Vietnamese buyers to accept.

Weekly assessments

• Japanese H2 scrap was at $320/t CFR, down by $2/t w-o-w.
• US-origin HMS 80:20 bulk stood at $340/t CFR Vietnam, down by $2/t w-o-w.

Market updates

A Vietnam-based trader commented, “Due to higher ocean freight, Vietnam cannot buy at current levels. A workable price would be around $320-325/t CFR, though it is unlikely sellers will offer H2 scrap at that level.”

Another trader commented that H2 offers were seen in the $325-326/t CFR range, with mainstream bids around $318-320/t CFR. US-origin deep-sea offers remained steady at $350/t CFR, with bids at $338-345/t CFR and tradable levels near $340-342/t CFR

According to market participant, Downstream demand for rebar remained weak, and with ample scrap inventories, many buyers continued to monitor market developments without committing to purchases.

Formosa Ha Tinh and Hoa Phat raised October HRC prices by $10 – 12/t, while August steel imports rose 17% m-o-m to 1.35 mnt.
Stable Chinese HRC futures added regional support, suggesting a cautiously positive outlook for Vietnam’s steel sector.

Outlook

In the near term, In the near term, market activity is expected to remain subdued due to high inventories and elevated freight costs, though underlying demand from infrastructure projects and steady HRC imports may provide support.