Vietnam: Scrap prices rise by $6/t w-o-w on restocking activity, seasonal demand pick-up hopes

• Vietnamese market to revive post-holidays in Sep’25
• Monsoon, weak project activity curb import appetite

Imported ferrous scrap prices in Vietnam rose by $6/tonne (t) w-o-w, supported by restocking activity as mills prepared for stronger finished steel demand ahead of the September-October peak season.

In Bangladesh, demand for Japanese scrap remained muted, as monsoon rains and a slowdown in government-backed project activity curbed buying.

Weekly assessments

• Japanese H2 scrap was at $324/t CFR, up by $6/t w-o-w.
• US-origin HMS 80:20 bulk stood at $344/t CFR Vietnam, rising by $6/t w-o-w.

Market updates

Due to the monsoon across Southeast Asia, overall finished steel demand was sluggish. However, Vietnam showed signs of emerging demand ahead of the anticipated peak season.

A trader noted that H2 offers increased to $328-332/t CFR, compared with around $325/t CFR two weeks ago. Bids were at $320-324/t CFR, edging up from mid-August when the highest level was $320/t CFR. US-origin bulk HMS 80:20 were heard at $345-350/t CFR Vietnam.

Typhoon Kajiki, which struck on 25 August, caused significant damage across northern and central Vietnam but had a limited impact on the scrap market, with only short-lived disruptions.

A Vietnam-based trader noted that demand for high-grade scrap remained firm, not only from local mills but also from regional buyers.

In Vietnam’s finished steel market, mills kept long product offers steady despite the typhoon. A millside participant commented that while the final week of August was quiet, overall sales for the month were satisfactory.

Outlook

In the near term, scrap market activity in Vietnam is expected to remain subdued during the national holidays during 30 August-2 September. Trading is expected to pick up after 3 September, with stronger demand likely through the September-October peak season.