- Restart of operations at northern mill to boost demand
- Government projects to support Vietnam’s scrap market
Imported ferrous scrap prices in Vietnam inched up by $5/tonne (t) w-o-w, but demand stayed muted as the holiday slowdown and a weaker VND weighed on buying interest.
Weekly assessments
- Japanese H2 scrap was at $318/t CFR, up by $5/t w-o-w.
- US-origin HMS 80:20 bulk stood at $338/t CFR Vietnam, rising by $5/t w-o-w.
Market updates
A trader noted that H2 offers increased by around $5/t to $320-325/t CFR Vietnam, while bids stayed firm at $310-315/t.
Offers for US-origin bulk HMS 80:20 were heard at $340-345/t CFR Vietnam last week, slightly wider than the previous $335-340/t, as sellers showed caution amid market uncertainty. Bids also edged up by $5/t to $330-335/t, compared with $325-330/t a week earlier.
As per a Southeast Asian major trading house representative, Vietnam booked H2-H1 mix at $290/t ex-Caribbean for 1,500-2,000 t. Japanese offers were at $325-330/t against bids of $315-320/t CFR, while US bulk interest remained thin with limited cargoes amid export uncertainty.
Another trader revealed that a northern steelmaker, idle in recent years, has been preparing to restart operations following consolidation with a larger mill. This may boost scrap demand in the medium term.
A domestic mill-side participant noted that “Vietnam’s economy is showing strong positive signals, amid the government’s active efforts to accelerate projects and stimulate growth.”
Outlook
Vietnam’s scrap market stays quiet, but the outlook is improving. Sustained infrastructure spending, mill restarts, and the announcement of 250 new projects are set to lift construction demand. Although Hoa Phat’s $4.54 billion Dak Lak complex will boost iron ore use, keeping scrap gains limited in the near term, broader demand recovery looks firmer ahead.
Leave a Reply