Vietnam’s scrap import prices are continuing to decline since the beginning of Nov’21. Scrap offers fell further considerably by $20-25/t, last week. Japanese suppliers lowered their offers post- the sharp fall in prices of the monthly Kanto scrap export tender. But, despite the low offers, the market remained weak.
Meanwhile, demand from the domestic and overseas markets, mainly from China, is weak at present. As a result, scrap inventory volume with the steel mills is quite high, SteelMint learnt from market sources.
Japanese bulk H2 scrap offers are now at $505/t CFR levels Vietnam, while buyers’ purchase prices are at around $500/t CFR Vietnam.
Additionally, Vietnam’s domestic market saw scrap, billets, and rebar prices declining as sentiments turned negative.
Vietnam’s steel market downtrends –
- Domestic scrap purchase prices fall: The domestic procurement prices fell further by VND 500/Kg ($21/t) w-o-w for H1 grade to VND 11,400/kg ($496/t) while H2 scrap is being offered at VND 11,100/kg ($483/t). Due to sluggish domestic rebar sales, all scrap buyers and distributors opted to wait and watch, sources informed SteelMint.
- Billets export offers inch down: Vietnam’s billets export market witnessed limited activity this week. According to SteelMint sources, the country’s BF-route offers were at $630/t FOB, a drop of $10/t, w-o-w.
Finished steel production recovers in Oct’21: Vietnam’s industrial production in October recovered as the Covid-19 epidemic was gradually came under control, social distancing measures were eased and business activities gradually got restored.
Production of finished steel products reached 2.87 million tonnes (mn t) in Oct’21, an increase of 19.36% m-o-m compared to Sept’21, and an increase of 14% y-o-y over the same period in 2020, as per data released by the Vietnam Steel Association (VSA).
Overview of other South East Asian markets: Imported shredded scrap offers into Indonesia from Australia are being quoted at $515/t CFR Jakarta.
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