Vietnam: Ferrous scrap imports fall by 17% m-o-m in Dec'22

Vietnam, a major consumer of ferrous scrap in South East Asia, recorded imports of 193,470 tonnes (t) in December, 2022 against 232,119 t in November, down by 17% m-o-m.

The country's scrap imports dropped 64% y-o-y compared to 539,254 t in December 2021.

A total of 3,649,440 t was imported by the country in January-December 2022, a decline of 36% against the corresponding period last year (CPLY).

Notably, imports declined considerably first time after the all-time high imports recorded in 2020, whereas, imports were almost similar in 2021.

Country-wise shipments

• Imports from Japan increase: Vietnam imported 70,298 t from Japan in December, a rise of 13% m-o-m as against 62,232 t in November. However, import volumes decreased drastically by 51% y-o-y from 144,779 t in December 2021.
  
  
• Imports from Australia rise m-o-m: Australia, a major exporter to Vietnam, saw an increase in December at 32,106 t as against 1,852 t in the previous month, drastically up by 1634% m-o-m. Shipments also decreased by 74% from 121,452 t in the same period last year.
  
  
• Imports from the US decline m-o-m: Vietnam's imports from the US were at 30,248 t in December, a major fall of 64% from 83,293 t in November 2022.
  
  

Reasons behind low imports

• Slow finished steel sales: Slower sales momentum in the domestic and overseas markets amid seasonal concerns and volatile global steel market prices and demand weighed on manufacturers' performance.
  
  
• Bid-offer disparity: The high offers and low bids kept imported scrap trade limited. The increased Japanese domestic demand kept offers high for overseas markets as well.
  
  

Outlook
It is expected that the Import volumes may see a further decline as prices for HMS (USA-origin) and H2 (Japan origin) scrap are going to rise in January 2023 which might impact the overall upcoming bookings for Vietnam.