Vietnam: Ferrous scrap imports rise by 17% in Oct'20 on active demand

SE Asia's largest ferrous scrap importer -Vietnam has recorded 17% m-o-m increase in ferrous scrap imports in Oct'20. Import volumes stood at 0.55 mn t in Oct'20, up by 17% from 0.47 mn t in Sep'20, as per customs data maintained with Steelmint.

On a yearly basis, scrap imports rose by 22% to 0.55 mn t in Oct'20 as compared with 0.45 mn t during the same month in the previous year. Japan continued to remain the largest scrap supplier to Vietnam at 0.32 mn t, up by 10% m-o-m. Other major suppliers were USA and Australia with volumes of 0.10 mn t and 0.05 mn t respectively in Oct'20.

• Japanese scrap prices have increased since the middle of July after Japanese auto plants resumed lifting domestic demand. SteelMint's monthly price assessment for bulk H2 scrap stood at $305/t CFR Vietnam in Sep'20 (up by 2% m-o-m) and US HMS (80:20) at $315/t CFR Vietnam in Sep'20 (up by 2% m-o-m)
  
  
• The domestic market continued to face many difficulties due to the impact of second Covid-19 wave in DA Nang in Sep'20, especially in flat products, as per VSA data. However, market sentiments started improving in Oct'20
  
  
• In September, domestic scrap prices rose by VND 400-500/kg to VND 6,700-7,000/kg
  
  
• In the first nine months of CY'20, Vietnam's crude steel production reached 12.37 mn t, up 10% y-o-y, as per VSA
  
  

Outlook - Domestic construction steel demand is expected to gradually recover after monsoon retreats. Also, active billet bookings for China are likely to keep demand of imported scrap firm.