Vietnam: Imported scrap prices hold steady w-o-w despite inventory pressure

• Scrap demand muted on high inventory, seasonal slowdown
• Local scrap remains a viable alternative to imports

Imported ferrous scrap prices in Vietnam remained largely stable w-o-w. Limited interest in deep-sea material due to adequate scrap inventories, low demand for big cargoes, and weather-related disruptions continued to weigh on buying activity.

Meanwhile, local scrap availability remained high, with low-cost domestic material serving as a viable alternative to imports.

The Vietnamese dong fell to a record low recently before recovering, discouraging mills from increasing scrap imports.

Weekly assessments

• Japanese H2 scrap was at $319/t CFR, falling by $1/tonne (t) w-o-w.
• US-origin HMS 80:20 bulk stood at $340/t CFR Vietnam, stable w-o-w.

Market updates

A trader informed of some restocking taking place this week, but a mill official commented they were in no hurry to restock, citing the gap between current offers and the target price.

Additionally, another mill source noted that due to the rainy season, production has slowed and scrap demand remains limited.

A market participant observed that Japanese H2 offers in Vietnam were reported at $325-326/t CFR at the most, while bids ranged from $316-320/t CFR assuming freight costs of around $35/t. US-origin deepsea offers held steady w-o-w at $350/t CFR Vietnam, with bids reported at $340/t CFR.

After the impact of Super Typhoon Ragasa earlier this week, local media reported that Typhoon Bualoi is intensifying and heading toward central and northern Vietnam, adding further uncertainty to market activity.

Outlook

Near-term demand is expected to remain muted due to seasonal slowdowns, high inventories, and currency volatility. Mills are likely to continue monitoring prices and restocking cautiously, while local scrap will remain a key alternative to imports.