- Demand weak amid flooding, sluggish steel activity
- Sentiment stays cautious, wide bid-offer gaps persist
Imported ferrous scrap prices in Vietnam recorded a slight w-o-w rise, supported by a weaker JPY and tight supply. However, overall market activity stayed subdued, as heavy rains and flooding disrupted logistics and slowed steel production across central regions.
A Vietnamese mill-side participant stated that demand for imported scrap remained weak, with mills maintaining a wait-and-watch approach and prioritising domestic scrap purchases. Another participant suggested that widespread flooding from Hue to Quang Ngai further dampened import demand by interrupting transport and operations.
Weekly assessments
- Japanese H2 scrap was at $327/t CFR, up by $2/t w-o-w.
- US-origin HMS 80:20 bulk stood at $347/t CFR Vietnam, up by $2/t w-o-w.
Market updates
A market participant noted that US-origin scrap offers stood at $350/t CFR, with bids unchanged at $340/t CFR. H2 scrap offers softened to $325-330/t CFR, while bids remained largely stable near $320/t CFR.
A mill-side participant stated, “The market remains sluggish as heavy flooding in northern and central Vietnam disrupts activity, while the south is only starting to recover, keeping overall demand weak.”
A Japan-based trader noted, “Import activity remains weak. Most Chinese mills are idle, and orders from Brazil for Galvalume and pre-painted coils have stopped. Egypt is active but not competitive, while Vietnam’s offers are about $200/t higher than China’s, making Chinese steel more attractive.”
Outlook
Near-term sentiment remains cautious as flooding disruptions, weak steel demand, and vessel shortages continue to weigh on import activity. However, mild support could emerge from tightening regional scrap supply and ongoing currency fluctuations.
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