Vietnam: Ferrous Scrap Imports Drop 15% in April

Vietnam - one of the world's fastest emerging steel market has recorded 15% M-o-M fall in its monthly scrap imports in Apr'18 as against imports recorded in Mar'18. As per recently released customs data, Vietnam has imported 293,781 MT ferrous scrap in Apr'18 as against 346,793 MT scrap imports in Mar'18.

On yearly premises, ferrous scrap imports to Vietnam have increased marginally by 4% Y-o-Y in Apr'18 as against 275,988MT ferrous scrap imports recorded in Apr'17.

In Apr'18, Vietnam witnessed significant fall in scrap exports from major exporters like Japan (-38% M-o-M), United States (-48% M-o-M), Hong Kong (-10% M-o-M), Australia (-55% M-o-M) however imports haven't plunged sharply as it witnessed sharp rise in scrap imports from other prominent exporters like Netherland (+100 M-o-M), New Zealand (+278% M-o-M), Singapore(+734% M-o-M) and Philippines (682% M-o-M).

Japan remained largest scrap supplier to Vietnam in Apr'18 - Japan remained largest ferrous scrap exporter in Apr'18 occupying 27% share in total ferrous scrap imports to Vietnam. Japan supplied 78,602 MT ferrous scrap which declined by 38% M-o-M as against 126,695 MT in Mar'18.

United States scrap exports fell nearly 50% in Apr'18 to Vietnam - After an announcement of US import tariffs, Vietnam's scrap imports from US plunged sharply. Vietnam also witnessed rising pressure on its steel exports amid stricter trade protections. US scrap exports recorded at 53,182 MT witnessing 48% fall in Apr'18 against 102,307 MT in Mar'18. US remained second largest exporter in Apr'18. Followed by other major exporters like Netherland (43,524 MT), Hong Kong (40,722 MT), Australia (21,448 MT) and Singapore (16,270 MT).

Vietnamese scrap imports rose 18% Y-o-Y during Jan-Apr'18 on rising crude steel production - During first four months of CY18, Vietnam imported 1.39 MnT ferrous scrap, which has increased 18% Y-o-Y as against 1.18 MnT ferrous scrap imports during Jan-Apr'17.

According to World Steel Association, Vietnam country witnessed 16% Y-o-Y growth in crude steel production in Q1 2018. The country produced 2.8 MnT crude steel during Q1'2018 as against 2.4 MnT crude steel production recorded in the same period last year. Rising EAF steel output in Vietnam has led to surged scrap imports as compared with last year.

During Jan-Apr'18, Japan remained largest exporter to Vietnam (0.46 MnT, -2% Y-o-Y) followed by United States (0.36 MnT, +100% Y-o-Y), Hong Kong (0.19 MnT, stable Y-o-Y) and Australia (0.14 MnT, +75% Y-o-Y) respectively occupying 33%,26%,14% and 10% share in total scrap imports to Vietnam.

Vietnam remained the largest importer in Japan's monthly scrap export tender - In CY 2017, total 225,000 MT ferrous scrap exported from Japan through its monthly ferrous scrap export tender - Kanto Tetsugen out of which Vietnam purchased highest 139,000 MT occupying 62% share.

Country-wise Vietnam ferrous scrap imports -

Quantity In MnT,
Source: SteelMint Research