Vietnam: Ferrous Scrap Imports Drop 21% in May'19

Vietnam, one of the leading ferrous scrap importers in East Asia has witnessed a considerable fall in scrap imports in May'19. Already filled stock with the steelmakers, after record high imports seen in April'19 could have resulted in a drop in imports in May'19. A decrease by 21% M-o-M was observed in the ferrous scrap imports, as the country imported 470,638 MT in May'19 as against 597,611 MT recorded in April'19, the recent data released by the customs department showed.

On yearly premises, imports were noted to rise by 55% Y-o-Y as against 304,174 MT in May'18.

Imported scrap offers to Vietnam remained range-bound in May'19 - After showing continued downtrend in April'19, Vietnam's imported scrap dropped slightly in 1st week of May and thereafter remained around USD 310-320/MT CFR Vietnam for the rest of the month, for US origin HMS 1&2 in bulk.

Japan remained the largest scrap supplier in May'19 - Japan exported 169,039 MT ferrous scrap occupying a share of 36% in total imports, dropping by 7% M-o-M as against 180,940 MT in April'19. Australia climbed to be the 2nd largest supplier, increasing exports to Vietnam by 36% M-o-M as the country supplied 99,690 MT in May'19 with a share of 21%, while US dropped to 3rd largest supplier position this month with 20% share as it supplied 96,106 MT in May'19, dropping 31% M-o-M.

Followed by other prominent suppliers Netherlands (41,999 MT) and Hong Kong (32,076 MT, down 18% M-o-M) with 9% and 7% of share respectively. No bookings from few of the regular leading scrap suppliers like Singapore and UK were reported in the month of May'19.

Vietnam crude steel production marginally dropped in April by 4% M-o-M as the country produced 1.35 MnT of crude steel in April'19 as against 1.4 MnT in March'19, while on an yearly basis it grew 35% Y-o-Y against 1 MnT produced in to April'18.