Vietnam: Ferrous scrap imports rise 75% m-o-m in Aug'23

Vietnam, a significant consumer of ferrous scrap in Southeast Asia, reported imports of 295,603 tonnes (t), as per data maintained with SteelMint. Import volumes reported a substantial month-on-month (m-o-m) increase, surging 75% compared to the 168,620 t recorded in July.

Import volumes displayed impressive growth, surpassing the 280,714 t imported in August 2022.

The increase in imports can be attributed to a decline in scrap generation within the domestic market, primarily caused by seasonal disruptions. All major suppliers successfully increased their scrap shipments to Vietnam, with the most significant growth observed in Japanese and Australian supplies, driven by competitive pricing.

Additionally, the resurgence in scrap demand was supported by the restart of Hoa Phat Group's 1 million tonne blast furnace at the Dung Quat plant in late July. This furnace had been inactive since late 2022 due to a sluggish market.

Country-wise shipments

Imports from Japan rise 11%: Vietnamese mills imported about 134,099 t of scrap from Japan in August, higher by 56% against 85,809 t in July. Imports rose 11% y-o-y in comparison with 121,196 t in August 2022.

Imports from the US up 39%: Imports from the US totaled 29,376 t in August, up by 39% as against 21,060 t a month ago. However, annual import volumes dropped significantly by 58% against 69,880 t in August 2022.

Imports from Australia surge significantly: Imports from Australia were assessed at 64,887 t for August, showing a whopping increase against 2,554 t seen in Jul'23, showing competitive pricing and interest from buyers.

Imports from Hong Kong up 12% m-o-m: Vietnam imported 37,613 t of scrap from Hong Kong in August, up by 12% against 33,465 t a month ago. Import volumes dropped 22% compared with 48,115 t in August 2022.

Outlook: Scrap imports into Vietnam are expected to improve further driven by exporters like Australia and Japan that are focusing on Vietnam as a more favorable market to supply in line with the current surge in buying interest.