Vietnam: Ferrous Scrap Imports Hit 6 Year High in 2018

On rising EAF crude steel production, Vietnam witnessed a fifth successive rise in yearly ferrous scrap imports in 2018 - SteelMint Data

Vietnam - one of the fastest emerging steel markets in South East Asia has maintained uptrend in crude steel production and ferrous scrap imports in 2018. As per recently released customs data, Vietnam imported 4,800,891 MT ferrous scrap, up 23% Y-o-Y as against 3,907,078 MT imports in 2017.

Japan remained the largest scrap supplier to Vietnam - Japan supplied 1.55 MnT ferrous scrap occupying almost 32% share in total imports in Vietnam. Japanese scrap exports climbed marginally by 2% Y-o-Y against 1.52 MnT in 2017. USA scrap exports surged 70% Y-o-Y crossing 1 MnT mark the first time while that from UK jumped 900% to 0.20 MnT in 2018 to Vietnam against 0.02 MnT in 2017.

According to World Steel Association, Vietnam crude steel production has almost doubled in just last two years time. The country produced 14.52 MnT crude steel in CY18, up 27% Y-o-Y as against 11.47 MnT crude steel production recorded in CY17. Rising EAF steel output which comprises of almost 65-70% of total production in Vietnam has led the country to become fourth largest scrap importer surpassing USA in 2018.

The higher production could be attributed to Formosa Ha Tinh Steel Corp., which fired up a second blast furnace in May'18, thereby doubling its crude steel production capacity to 7 MnT per year.

Scrap imports down 9% M-o-M in Dec'18 - Vietnam imported 487,841 MT ferrous scrap in Dec'18 against 537,312 MT in Nov'18. Notably, scrap exports in Nov'18 hit 1 year high in 2018. On yearly premises, ferrous scrap imports increased 30% Y-o-Y as against 374,442 MT ferrous scrap imports recorded in Dec'17.

Japan supplied highest 137,453 MT ferrous scrap in Dec'18, stable M-o-M. Followed by other prominent suppliers like Australia (99,980 MT, +20% M-o-M), USA (51,389 MT, -68% M-o-M), Netherland (47,443 MT) and United Kingdom (45,398 MT) occupying 20%, 11%, 10% and 9% share.

Vietnam's crude steel production recorded at 1.29 MnT in Dec'18, stable M-o-M.

Following starting up of Hoa Phat Dung Quat steel complex which will have 4 blast furnaces with an overall production capacity 5 MnT/year and a lot of new capacities to come this year, steel production is expected to remain on an upward trend in 2019. However, rising trade barriers and stricter inspection at ports may put some pressure on scrap imports.

Country-wise Vietnam ferrous scrap imports -

Quantity in MnT,
Source: SteelMint Stats