Vietnam: Ferrous scrap imports at four-month high in Nov'21

Vietnam's ferrous scrap imports were recorded at 0.4 million tonnes (mn t) in Nov'21, up 18% m-o-m vis-a-vis 0.34 mn t seen in Oct'21. Volumes have risen to a four-month high from 0.6 mn t in Jul'21 after which volumes fell on Covid-induced lockdowns.

Japan was the largest supplier followed by the USA and Hong Kong, in Nov'21.

Vietnam's ferrous scrap import volumes bounced back in November after seeing a downtrend for three successive months, as the country's steel industry came back into the market from early October after easing of a three month-long Covid-related lockdown.

However, on a y-o-y basis, total import volumes were down by 23% from 0.52 mn t in Nov'20.

Market highlights

• Imports from Japan rise: Vietnam's scrap imports from Japan saw an uptrend. These were recorded at 0.17 mn t in Nov'21, up by 13% against 0.15 mn t in Oct'21.
  
  

Vietnam's bulk scrap buyers have exhibited improved buying post-lifting of lockdown restrictions. Despite the continuous hike in imported scrap prices from Japan, buyers and steel mills actively started restocking inventory. Increasing demand from domestic and overseas markets have kept buyers aggressive.

• Import volumes from USA rebound: A major portion of the volumes originated from USA, at 0.09 mn t, rising 13% m-o-m in November as against 0.08 mn t in October. The increase in imports was due to higher price offers from Japan, because of which mills started booking scrap of Australian and US origin.
  
  
• Imports from Hong Kong surge: Vietnam's imports from Hong Kong ranked third in Nov'21 at 0.06 mn t, witnessing an upsurge of 100% from Oct'21 levels of 0.03 mn t, SteelMint data showed.
  
  
• Prices rally from Japan: SteelMint's monthly price assessment for bulk Japanese H2 scrap stood at $530/t CFR Vietnam in Oct'21, up by around $40-50/t CFR against $482/t in the previous month. Tighter availability and strong domestic demand boosted Japanese scrap suppliers to maintain offers on the higher side.
  
  

• Vietnam's domestic scrap prices up:SteelMint's monthly price assessment for H2 scrap stood at VND 12,025/kg ($523/t) in Oct'21 up by VND 275/kg ($12/t) against the previous month.
  
  

Outlook
The imported scrap market in Vietnam is expected to remain volatile in the coming days owing to the fluctuations in prices. Hence, buyers have opted to wait and watch for the time being. Also, with Japan's monthly Kanto tender remaining inconclusive for two straight months in November and December, export volumes from Japan are likely to remain on the lower side.