Vietnam: Imported scrap prices dip by $2/t w-o-w amid dull inquiries

• Trade tensions, price uncertainty keep buyers cautious
• Upcoming Ghost Month to dampen construction activity

Imported ferrous scrap prices in Vietnam recorded a marginal decline of $2/tonne (t) on average w-o-w, with both Japanese and US-origin offers softening amid subdued buying interest from the mill side.

Weekly assessments

• Japanese H2 was assessed at $323/t CFR, down by $2/t w-o-w.
• US-origin HMS 80:20 bulk was assessed at $338/t CFR Vietnam, down by $2/t w-o-w.

Market commentary

Dull buying interest and lower bids prompted suppliers of imported scrap to reduce their offers. Trade tensions and uncertainty regarding prices also kept buyers on the sidelines.

A mill-side participant stated that offers for Japan-origin H2 scrap in bulk were heard at $320-325/t CFR. The tradable level, as per buyers, was slightly lower at $320/t CFR.

Meanwhile, US-origin HMS 80:20 was offered in bulk at $350-355/t CFR Vietnam, with indicative bids at $335-340/t CFR Vietnam.

A Vietnam-based trader noted, “Buyers may move to secure H2 scrap this week out of concern that steel market conditions could worsen further due to the ongoing US-China trade tensions. However, purchase volumes are expected to remain limited.”

A Japanese supplier added that HS offers softened to $350/t CFR, while bids remained at around $345/t CFR.

Domestic market scenario

• South Vietnam: Domestic HMS (3-6 mm thick) bids were heard at VND 7,850-8,200/kg ($301-314/t), delivered to a southern mill, excluding VAT.
• North Vietnam: Bids for domestic HMS (3-6 mm thick) rose to VND 8,700-9,100/kg ($334-349/t), delivered to a northern mill, excluding VAT.

A trader pointed to demand pressure, especially in the north, with finished product prices beginning to soften. Seasonal factors such as the ongoing rainy season and the upcoming Ghost Month (August) are also expected to dampen activity. Generally, people avoid construction work or major renovations during the Ghost Month, as per local beliefs. Rebar demand declines, as well as buying interest for scrap.

Vietnam, US trade talks advance as tariff deadline nears

Vietnam and the US made headway in their 9-12 June trade negotiations, though key issues, such as Vietnam’s dependence on Chinese inputs, remain unresolved. The talks come ahead of a looming 46% reciprocal tariff, with the 90-day pause set to expire in early July. With Vietnam’s trade surplus with the US reaching $12.2 billion in May and exports hitting record highs, further dialogue is planned to prevent tariff reimposition.

Outlook

Near-term sentiment leans slightly bearish, with participants expecting further softening in imported scrap prices due to cautious buying, seasonal demand slowdown, and global trade uncertainty.