Vietnam Ferrous Scrap Imports from Japan Hit 3 Years High in July

Vietnam ferrous scrap imports witnessed a significant rise in July'19 majorly on account of increased shipments from Japan and US at significantly lowered prices in June-July period. The country imported 460,858 MT ferrous scrap in the month, increasing by 31% M-o-M as against 352,013 MT of ferrous scrap recorded in June'19, the recent data released by the customs department showed.

On yearly premises too, scrap imports registered a rise of 16% Y-o-Y as against 395,560 MT in July'18.

As Japanese scrap prices were under continuous downtrend since April and reached lowest levels by Jun-Jul, buyers from Vietnam learned to have actively booked Japanese scrap, witnessing highest imports from Japan recorded in over 3 years. Prior to this, the highest is recorded at 220,382 MT ferrous scrap in Jun'16.

The average price for two most preferred grades in bulk volume, Japanese H2 and USA HMS 1&2 declined to USD 295-300/MT, CFR Vietnam in June from around USD 310-315/MT, CFR levels in May'19. Thus, an increased booking for July'19 delivery was observed amid supportive finish steel prices in the country.

Japan remained the largest supplier to Vietnam as it exported 199,897 MT ferrous scrap in July'19 with a share of 43% in total imports by Vietnam, witnessing a rise by a considerable 54% M-o-M from 129,887 MT exported in June'19. Another top supplier USA too witnessed an increase in scrap exports to Vietnam by 45% M-o-M, as it supplied 112,907 MT in July'19 with a 25% share, against just 77,635 MT in Jun'19. Other top suppliers to Vietnam were Australia (105,562 MT, up 3600% M-o-M), and Hong Kong (17,729 MT, down 33% M-o-M) on a monthly basis, with a 23% and 4% share respectively.

Vietnam's crude steel production in H1 2019 witnessed a rise of 34% Y-o-Y with 8.18 MnT production during the first 6 months this year, as against 6.09 MnT of production in H2 2018.