Vietnam: Ferrous scrap imports rise over 15% m-o-m in 10MCY'24 amid higher crude steel output

• Imports from Japan, HK, Canada surge in 10MCY'24
  
  
• Japan emerges top supplier with $3/t m-o-m price drop
  
  

Vietnam's ferrous scrap imports touched 3.53 million tonnes (mnt) for the first ten months of calendar year 2024 (10MCY'24), a rise of 17% from 3.03 mnt in 10MCY'23. The surge comes amid a 17% y-o-y increase in Vietnam's crude steel production in 10MCY'24, which stood at 18.2 mnt compared to 15.6 mnt in 10MCY'23.

According to BigMint's data, in October 2024, imports grew 18% to 0.34 mnt compared to 0.29 mnt in October 2023. On a m-o-m basis, ferrous scrap imports increased by 17% to 0.33 mnt in October 2024 from 0.28 mnt in September 2024.

The y-o-y increase in imports in 10MCY'24 was driven by higher shipments from Japan, Hong Kong, and Canada.

Vietnam's vehicle sales surged 50% y-o-y to 35,114 units in October 2024, driven by dealer discounts and a 50% registration tax cut. Total sales, including imports, stood at 56,301 units. In the first ten months of 2024, the market grew 7% y-o-y to 228,968 units, with commercial vehicle sales up 17% y-o-y.

Country-wise break-up

Japan: Vietnamese steel mills imported approximately 1.99 mnt of ferrous scrap from Japan in 10MCY'24, an increase of 68% compared to 1.18 mnt 10MCY'23.

Japan was the top supplier in October 2024, with approximately 189,663 tonnes (t) of ferrous scrap arrival, which accounts for 57% of the total volume imported into Vietnam. M-o-m, this marks an increase of 17% compared to 162,416 t in September. On a y-o-y basis, imports increased notably by 38%, in comparison with 137,427 t in October 2023.

The increase in Vietnamese imports of bulk scrap from Japan can be attributed to the $3/t decrease in prices of Japanese-origin H2 bulk scrap, which dropped to $343/t in October from $346/t in September, making it more cost-effective for Vietnamese buyers.

US: Imports from the US to Vietnam in 10MCY'24 dropped by 30% y-o-y to 594,376 t in comparison with 418,185 t in 10MCY'23.

In October 2024, imports from the US to Vietnam stood at 42,894 t, an increase of 11% compared to 38,777 t in September. On a y-o-y basis, imports surged by 67% from 25,660 t in October 2023.

Vietnamese imports of bulk scrap from the US rose despite an $8/t increase in HMS (80:20) bulk scrap prices, to $368/t in October from $360/t in September.

Hong Kong: Imports from Hong Kong to Vietnam surged significantly by 57% y-o-y, to 484,923 t in 10MCY'24 from 309,639 t in 10MCY'23.

In October 2024, imports fell marginally by 1% to 34,819 t in comparison with 35,062 t in September 2024. On a y-o-y basis, imports decreased by 10% from 38,874 t in October 2023.

Canada: Imports from Canada to Vietnam more than doubled to 67,693 t in 10MCY'24 from 23,549 t in the same period of 2023.

Similarly, in October 2024, imports from Canada to Vietnam more than doubled to 11,087 t compared with 4,894 t in September 2024. On a y-o-y basis, imports increased exponentially, in comparison with 985 t in October 2023.

Australia: Imports from Australia to Vietnam decreased by 6% m-o-m to 29,709 t in October 2024 from 31,711 t in September.