Vietnam: Ferrous scrap imports largely stable in Oct'21

Vietnam's ferrous scrap imports were recorded at 0.34 million tonnes (mn t) in Oct'21, largely stable m-o-m vis-a-vis 0.35 mn t seen in Sept'21.

Japan was the largest supplier followed by USA and Australia, in Oct'21.

Ferrous scrap import bookings fell to some extent with bare minimum trade volumes observed as against last month owing to bid-offer gap, less demand due to subdued steel demand which had harshly impacted the overall steel industry.

However, on a y-o-y basis, total import volumes were down by 38% from 0.55 mn t in Oct'20.

Market highlights

• Imports from Japan rebound: Vietnam's scrap imports from Japan rebounded. These were recorded at 0.15 mn t in Oct'21, surging by 88% against 0.08 mn t in Sept'21. However, the volumes are still lower than the 0.22 mn t seen earlier this year.
  
  
• Import volumes from USA plunge: The bulk of the volumes originated from USA at 0.08 mn t, although these showed a drop of 50% m-o-m in October as against 0.16 mn t in September. US-based steel producers registered decrease in exports on account of limited availability and active bookings by Turkey-based mills.
  
  
• Imports from Australia fall: Vietnam's imports from Australia ranked third in Oct'21 at 0.03 mn t, a 25% decrease from Sept'21 levels of 0.04 mn t, SteelMint data showed.
  
  
• Imported scrap prices from Japan rise: SteelMint's monthly price assessment for bulk Japanese H2 scrap stood at $482/t CFR Vietnam in Sept'21, up by around $5-10/t CFR against $475/t in the previous month.
  
  
• Vietnam's domestic scrap prices up: SteelMint's monthly price assessment for H2 scrap stood at VND 11,750/kg (511/t) in Sept'21 up by VND 600/kg ($26/t) against the previous month.
  
  
• Vietnam's steel production up 19% m-o-m: Production of finished steel products reached 2.87 million tonnes (mn t) in Oct'21, an increase of 19.36% m-o-m compared to Sept'21, and an increase of 14% y-o-y over the same period in 2020, as per data released by the Vietnam Steel Association (VSA).
  
  

Outlook
The imported scrap market in Vietnam is expected to see recovery with easing of lockdown. However subdued steel demand and drop in global prices may continue to weigh down sentiments.