Vietnam: Imported scrap prices stay stable; trades slow down amid Labour Day holidays

• Mills to resume buying post-holiday
• Weak Japanese demand stablises scrap export prices

Vietnam’s imported scrap prices held steady w-o-w amid limited market activity during the extended Labour Day holidays.

This week, deep-sea bulk offers remained under pressure as subdued Turkish buying interest kept HMS 80:20 offers flat at around $330-340/t CFR Vietnam.

Weekly assessments

• US-origin HMS 80:20 deep-sea bulk cargoes were assessed at $340/t CFR, stable w-o-w.
• Japanese H2 remains stable w-o-w at $325/t CFR Vietnam.

Market commentary

A market participant informed that H2 scrap offers dropped to $325-330/t CFR Vietnam. Bids also weakened to $315-320/t, down from $325/t the previous week.

A Singapore-based trader said, “subdued domestic demand in Japan has pushed scrap exporters to lower their prices in order to stay competitive in the international market.”

A market participant commented, “Trading activity slowed due to holidays, while weak demand from Turkiye and a sluggish Japanese domestic market kept both offers and bids stable in the deep-sea and containerised scrap segments.”

On the supply side, a Japanese source said HS offers were at $350-355/t CFR, with a top offer of  $360/t, while bids stood at $345-350/t CFR Vietnam.

Domestic market scenario

• In northern Vietnam, bids for domestic scrap ranged between VND 8,500-8,800/kg ($328-339/t) (excluding VAT), largely stable from the previous week.
• In the southern region, prices ranged between VND 7,900-8,600/kg ($304-331/t) (excluding VAT), largely stable w-o-w.

Other updates

Hyundai Vietnam JV to invest $100 million in shipyard expansion

Hyundai Vietnam Shipbuilding Co., a South Korea-Vietnam joint venture, will invest $100 million to boost annual capacity from DWT 950,000 to DWT 1.425 million by 2030. HVS, which has delivered 183 vessels since 1996, including cargo ships and tankers, forecasts $702 million revenue in 2025. The investment underscores Vietnam’s economic growth and will increase demand for heavy ship fabrication and domestic steel-making.

Outlook

As holiday slowdown eases, renewed buying interest should keep deep-sea and containerised scrap prices firm. Japanese exporters will likely maintain competitive H2 offers amid subdued home demand to protect market share, and Vietnam’s scrap consumption is set to strengthen as steel mills restart and Hyundai Vietnam’s shipyard expansion boosts long-term demand.