Vietnam: Imported scrap prices drop by up to $3/t w-o-w amid high inventories, slow sales

• Wide bid-offer disparities slow down deal closures
• Obon holiday expected to limit Japanese scrap offers

Imported ferrous scrap prices in Vietnam fell by up to $3/tonne (t) w-o-w as buyers showed little urgency to book material, citing sufficient inventories.

A Vietnam-based trader said, “Buyers are in no rush, as inventories remain sufficient,” adding that prices may stay range-bound in the near term amid sluggish finished steel sales.

Weekly assessments

• Japanese H2 scrap was at $310/t CFR, down $3/t w-o-w.
• US-origin HMS 80:20 bulk stood at $330/t CFR Vietnam, having dropped by $2/t w-o-w.

Market updates

A mill-side participant noted, “H2 demand was said to be weak, though some restocking interest persisted.”

H2 offers to Vietnam were heard at $310-315/t CFR, with indicative bids below $310/t CFR keeping the market under pressure. US-origin deep-sea offers stood at $345/t CFR, while bids ranged between $325-330/t CFR, leaving the bulk market sluggish amid a wide offer-bid gap.

“If prices are right, major buyers in Vietnam can still secure deep-sea bulk, as demand exists and quantity is not a constraint,” stated a source.

Most September shipments have already been concluded. With the upcoming Obon holiday in Japan expected to slow scrap collection, some suppliers are holding back from fresh offers.

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The Hoa Phat Group has increased its monthly HRC (SAE1006, non-skin-passed) prices by approximately $16/t m-o-m for September sales. Post-revision, prices in the southern region were at around $518/t or VND 13,580,000/t as compared to $502/t a month ago, excluding VAT. This rise in prices can be attributed to improved domestic demand and reduced competition from imports.

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Adani Group has pledged up to $10 billion in investment for Vietnam, focusing on infrastructure, energy, ports, airports, logistics, and digital technology. Chairman Gautam Adani outlined the plan in Hanoi, with a proposed Da Nang Port project signalling deeper engagement in Vietnam’s fast-growing economy and alignment with its renewable and digital goals.

Outlook

H2 prices may see a slight improvement in the near term, supported by firmer Chinese steel prices. However, buyer caution, slow finished steel sales, and wide bid-offer gaps are expected to restrict any sharp gains.