Vietnam: Cautious market activity prevails even as imported H2 scrap offers rise

• Market sees low inquiries for H2 scrap
  
  
• Hoa Phat cuts HRC prices by $13/t
  
  

Imported ferrous scrap prices into Vietnam from Japan have risen by approximately $3/t in the, while offers for US scrap remain largely stable.

According to a market insider, inquiries for H2 scrap remain low as workable prices stay below $345/t. Buyers are exercising caution in response to prevailing dull market sentiments.

Towards the middle of last week, HMS (80:20) offers from Australia were $370/t CFR Vietnam, with bids for US-origin bulk HMS(80:20) were heard at $355-360/t CFR.

Another US offer for HMS (80:20) was also at $370-374/t. Japanese H2 scrap was offered at $350-355/t CFR, with tradable levels at $340-342/t and lower.

A representative of a Vietnamese mill reported that offers for heavy scrap (HS) were around $360-$370/t CFR Vietnam, with bids remaining steady at around $350-355/t.

Assessments

• Weekly assessment for deep-sea bulk US cargoes of HMS (80:20) CFR Vietnam stood at $372/t, largely stable w-o-w.
  
  
• Weekly assessment for Japanese-origin H2, a major tradable grade in Vietnam's scrap market, was at $350-354/t CFR up by $3/t w-o-w.
  
  

Domestic market

Vietnam has extended antidumping duties on colour-coated steel from China and South Korea for five years, until 23 October, 2029, to protect its domestic market from cheap imports. Duties for Chinese companies range from 2.56% to 34.7%, while South Korean rates are between 4.95% and 19.25%.

Hoa Phat Group has reduced its monthly hot-rolled coil (HRC) prices by about $13/t for January-February shipments, bringing them to approximately $537/t (VND 13,590,000/t) for the southern region, excluding VAT. This price cut responds to declining domestic demand and competition from Chinese imports.

Despite a slight increase in domestic HRC prices to $537-538/t due to the devaluation of the Vietnamese dong, the USD equivalent fell by $8-9/t. While the sales outlook is positive, some buyers may be hesitant to accept the higher prices amid slowing demand.

The Vietnamese Prime Minister urged Qatar's $475 billion sovereign wealth fund, Qatar Investment Authority (QIA), to increase investments in strategic infrastructure, digital transformation, and renewable energy projects. During a meeting in Doha, he highlighted opportunities for cooperation, encouraging QIA to send delegations to explore key national projects.

Outlook:

The price outlook for construction steel in Vietnam is mixed, mainly due to sluggish demand. It depends on the patience of Japanese suppliers and Vietnamese buyers, as demand has not yet improved. However, there are expectations for increased sales in the last quarter, which could influence the imported scrap market.