- Vietnamese mills cautious amid low sales, ample inventory
- Domestic price cuts, new US tariffs exert pressure on market
Imported ferrous scrap prices in Vietnam edged down by $2/tonne (t) w-o-w, with the market impacted by monsoon disruptions, softer regional trends, and cautious sentiment following recent trade agreements.
Japan, a key scrap exporter to Vietnam, saw prices fall after Tokyo Steel, the country’s top scrap buyer implemented consecutive purchase price cuts. Meanwhile, subdued trading activity from Turkiye further weighed on sentiment.
Scrap prices in Vietnam saw limited movement this week, as weak fundamentals in the finished steel sector continued to dampen demand.
Weekly assessments
- Japanese H2 was assessed at $318/t CFR, down by $2/t w-o-w.
- US-origin HMS 80:20 bulk was assessed at $336/t CFR Vietnam, down by $2/t w-o-w.
Market updates
A mill representative stated that Vietnamese buyers targeted $315-316/t CFR for Japanese H2, down slightly from $320-322/t, but mill bids eased to $305-306/t versus $310/t previously.
Meanwhile, offers for US-origin bulk deep-sea HMS 80:20 to Vietnam were heard at $336-340/t CFR last week, softening from the prior week’s $340-345/t and bids fell by $2-3/t w-o-w to $327-328/t.
A Vietnam-based trader said, “Sufficient inventories and sluggish finished steel sales are weighing on scrap demand, After a month of weak sales, most buyers are well-stocked, leading to a slowdown in scrap procurement.”
A market participant noted, “Long steel prices in Vietnam fell as construction activity slowed. Official rebar and wire rod offers dropped by VND 200/kg ($8/t) w-o-w. The rainy season has hit demand hard.
HS scrap offers were at $350-355/t CFR with bids at $340-346/t, as buyers awaited Kanto tender results.
New tariff for exports, transshipments
Under the agreement with the US, Vietnamese goods exported to the US will face a 20% tariff, significantly lower than the initially proposed 46%. However, goods trans-shipped through Vietnam from third countries will incur a higher 40% tariff.
Hoa Phat decreases HRC prices for Aug’25
Hoa Phat cut August HRC prices by $11/t to $502/t on sluggish demand. The move reflects bearish sentiment and weak sales in Vietnam’s steel market.
Outlook
The new tariff regime, with 20% duties on Vietnamese exports to the US and 40% on transshipments of Chinese goods, is expected to deal a significant blow to local manufacturers. Trade demand is likely to remain weak despite the trade agreement. Market participants foresee little improvement in Vietnam’s long steel and scrap markets, as mills have already secured sufficient billets and raw materials. Construction activity may remain subdued until at least September.
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