- Mills stay sidelined after Kanto tender
- Buyers cautious due to high scrap inventories
Vietnam’s scrap market stays largely unchanged in mid-December, with trading activity slowing as the market gradually slips into holiday mode. While scrap buying lost momentum has been slow due to comfortable inventories, participants note that the Vietnamese government continues to push ahead with domestic infrastructure development offering longer-term demand support.
Weekly assessments
- Japanese H2 scrap was at $324/t CFR, stable w-o-w.
- US-origin HMS 80:20 bulk stood at $344/t CFR Vietnam, stable w-o-w.
Market updates
H2 scrap offers were heard at $325-328/t CFR Vietnam with bids remaining rangebound at around $320/t CFR. Some buyers were willing to stretch to $322-323/t CFR. US-origin HMS 80:20 deep-sea scrap offers were reported at $350/t CFR Vietnam, unchanged from the previous week, with indicative bids also stable at around $342/t CFR Vietnam.
A Vietnam-based steel mill official said, “The largest H2 buyer had already covered requirements through the Kanto tender, reducing the need for further deep-sea purchases. As a result, mills were focusing more on containerised or domestic scrap, with limited restocking requirements in the near term.”
Domestic updates
In the southern region of Vietnam, domestic HMS scrap of 3-6 mm thickness was heard at VND 7,900-8,300/kg ($300-315/t) delivered to mills, excluding VAT.
In the northern region, domestic HMS scrap bids were higher at VND 8,550-9,200/kg ($325-349/t) delivered to mills, excluding VAT, reflecting relatively firmer regional demand.
Outlook
Vietnam’s scrap prices are expected to remain rangebound in the near term as mills stay well-covered and buying interest remains cautious through the holiday period. However, market participants remain positive about the broader outlook, citing continued economic growth and ongoing infrastructure development as supportive factors heading into next year.
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