Vietnam: Ferrous scrap imports down by nearly 20% m-o-m in Nov'22

Vietnam, a major consumer of ferrous scrap in South East Asia, recorded imports of 232,119 tonnes (t) in November against 283,490 t in October, down by 18% m-o-m.

Scrap import volume was less due to decline in shipments from major suppliers like Japan and Australia, with the exception of the US, Singapore, and Hong Kong.

The country's scrap imports dropped 42% y-o-y compared to 398,965 t in November 2021.

A total of 3.46 mnt was imported by the country in the time period of Jan-Nov 2022, a decline of 33% against the same time last year.

Country-wise shipments

• Imports from the US recover: Vietnam imported 83,293 t from the US in November, a major recovery of 274% m-o-m as against 22,297t in October as Vietnamese buyers returned to the market for US materials. However, on a y-o-y basis, import volumes decreased by 5% from 87,544 t in November 2021.
  
  

• Exports from Japan fall m-o-m: Japan a major exporter to Vietnam saw a downfall in November month at 62,232 t as against 166,553 t in the previous month, down by 63% m-o-m. Shipments also decreased by 63% from 168,698 t in the same period last year.
  
  
• Imports from Australia decline: Vietnam's imports from Australia were at 1,852 t in November, a major fall of 94% from 29,794 t in October 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 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
Import volumes may see a further decline as prices for US HMS and Japanese H2 scrap are expected to rise in the near term, following global ferrous scrap cues.