Vietnam: Ferrous scrap imports rebound in Feb'22 on economic revival

Vietnam's ferrous scrap imports rebounded by 94% to 0.31 million tonnes (mnt) m-o-m in Feb'22 compared to 0.16 mnt in Jan'22.

Japan was the largest supplier with 126,960 tonnes (t), followed by the US and Hong Kong with 76,900 t and 36,320 t respectively.

On a y-o-y basis, import volumes dipped by 3% from 0.32 mnt seen in Feb'21.

Vietnam increased its ferrous scrap imports this month, as demand accelerated because of large public investments in civil works and infrastructure projects. The country regained economic momentum in February with the loosening of lockdown measures.

Reasons for rise in imports:

• Imports from Japan rise despite price hike: Vietnam's scrap imports from Japan saw an uptrend. These were recorded at 0.13 mnt in Feb'22, a sharp surge against 0.03 mnt in Jan'22.
  
  

Vietnam's bulk scrap buyers showed active buying interests after lockdown restrictions were lifted. Despite the continuous hike in scrap export prices from Japan, steel mills actively started restocking inventories. Increasing demand from domestic and overseas markets have kept buyers aggressive.

SteelMint's monthly price assessment for bulk Japanese H2 scrap stood at $496/t CFR Vietnam in Jan'22, up by $5-10/t CFR against $488/t in the previous month. Tighter availability and strong domestic demand made Japanese scrap suppliers to maintain offers on the higher side.

• Import volumes from US increase: A major volume of 0.08 mnt was imported from the US, which showed a sharp rise of 60% m-o-m in Feb'22 against 0.05 mnt in Jan'22.
  
  

Suppliers became active as the winter season started declining after December. Hence, scrap generation improved, resulting in acceleration in exports.

Outlook
Vietnam is expected to increase ferrous scrap imports in March, owing to high buying interest from domestic mills and export destinations.