Vietnam: Ferrous scrap imports down by over 15% m-o-m in May'24

Vietnam's ferrous scrap imports declined by 18% m-o-m to 0.28 million tonnes (mnt) in May 2024 as compared to 0.34 mnt in April 2024. Meanwhile, ferrous scrap imports volume increased by 6% y-o-y as compared to 0.26 mnt in the same month of the previous year.

However, over the first five months (January-May) of calendar year 2024 (CY 2024), ferrous scrap imports declined by 5% y-o-y to 1.75 mnt, compared to 1.85 mnt during the corresponding period last year (CPLY).

Country-wise break-up

Imports from Japan down: Vietnamese major mills imported 152,046 t of ferrous scrap in May 2024, a 14% decline compared to 175,943 t in the previous month. However, on a y-o-y basis, imports increased by 79% from 84,797 t recorded in May 2023.

Imports from the US drop: Imports from the US to Vietnam witnessed a drop of 10% with 46,506 t in May 2024 as compared to 51,802 t a month ago. However, on a y-o-y basis, this represented a significant decline of 52% compared to 97,594 t imported in May 2023.

Imports from Hong Kong up: Ferrous scrap imports from Hong Kong to Vietnam increased by 13% in May 2024 to 54,965 t compared to 48,662 t in the previous month. Similarly, on a y-o-y basis, major mills' ferrous scrap imports from Hong Kong saw a significant rise of 77% as compared to 30,972 t in May 2023.

Outlook: Ferrous scrap imports into Vietnam are expected to remain relatively stable with minor fluctuations. Mills may procure smaller volumes ahead of the monsoon season, anticipating sluggish steel demand in the domestic market.