Vietnam: Ferrous scrap imports rise 7% y-o-y in H1CY'24

Vietnam's ferrous scrap imports stood at 2.17 mnt (million tonnes) in H1 of 2024 (January-June) marking a 7% increase as compared to 2.03 mnt in the same period of 2023.

M-o-m, ferrous scrap imports stood at 428,437 t in June 2024, marking a 55% increase from 276,140 t in May 2024, according to BigMint's data. On a y-o-y basis imports significantly increased by 65% y-o-y as compared to 259,336 t in June 2023.

Country-wise break-up:

Imports from Japan decline: Vietnamese steel mills imported approximately 0.72 mnt of ferrous scrap in H1CY'24, a decrease of 24% compared to 1.22 mnt in the first half of H1CY'23. In June 2024, scrap imports amounted to 210,377 t, reflecting a 38% increase compared to 152,046 t in the previous month. On a y-o-y basis, imports surged by 116% from 97,324 t recorded in June 2023.

Imports from the US drop over 45%: Ferrous scrap imports from the US to Vietnam stood at 0.24 mnt in H1CY'24, marking a decrease of 46% compared to 0.46 mnt in the same period last year. In June 2024, ferrous scrap imports rose by 38% m-o-m to 210,377 t, up from 152,046 t in the previous month. On a y-o-y basis, major mills' ferrous scrap imports from the US saw a significant rise of 203%, increasing from 18,404 t in June 2023.

Imports from Hong Kong rise over 60%: Imports from Hong Kong to Vietnam surged by 65% to 279,601 t in H1CY'24, compared to 169,042 t in the corresponding period last year. M-o-m, ferrous scrap imports witnessed a drop of 33%, with 36,790 t in June 2024, down from 54,965 t in the previous month. However, on a y-o-y basis, this represented a significant rise of 51% compared to the 24,322 t imported in June 2023.

Outlook: In the near term, ferrous scrap imports are set to rise due to improved steel demand in Vietnam. Additionally, in the last two Kanto tenders, two bids were awarded to Vietnam in June and July. Additionally, with low domestic steel demand in the US, there is a stronger focus on exporting.