- High freights, tight supply support imported prices
- Mills prefer domestic scrap, rains slow restocking
Imported ferrous scrap prices in Vietnam remained largely range-bound w-o-w, supported by higher freights and limited scrap availability. Persistent monsoon rains and typhoon disruptions slowed restocking activity.
Freights for Japanese scrap shipments to Vietnam rose by around $5/tonne (t), averaging $40/t compared with $35/t earlier in the month.
Weekly assessments
- Japanese H2 scrap was at $325/t CFR, down by $1/t w-o-w.
- US-origin HMS 80:20 bulk stood at $345/t CFR Vietnam, down by $2/t w-o-w.
Market updates
Market activity in Vietnam was subdued, as mills focused on consuming existing inventories and favoured domestic scrap purchases over imported cargoes. A mill-side participant noted, “We currently have no demand for deep-sea scrap due to high stock levels.”
Another mill source stated that heavy rains from the ongoing monsoon and typhoon season continued to slow Vietnam’s steel scrap restocking activity during the week.
A market participant observed that Japanese H2 offers held steady at $330/t CFR Vietnam, with competitive offers up $5/t and some reaching $335/t. Bids rose to $320-330/t CFR. US-origin deep-sea HMS 80:20 offers stayed firm at $350/t CFR, with bids around $340/t.
A Japan-based trader noted Vietnamese mills are preferring cheaper containerised scrap: “They do not need to buy high-priced bulk cargoes from Japan right now.”
Outlook
Near-term sentiment remains cautious, as mills are expected to continue relying on domestic scrap amid weak finished steel demand, high freights, and slow construction activity due to ongoing weather disruptions.
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