Vietnam: Ferrous scrap imports slump 50% in Aug'21 amid lockdown curbs

Vietnam's ferrous scrap imports were recorded at 0.33 million tonnes (mn t) in Aug'21, a decrease of 50% m-o-m vis-a-vis 0.66 mn t in Jul'21.

The US was the largest supplier followed by Japan and Hong Kong in Aug'21. Ferrous scrap import bookings dropped with lower trade volumes observed on account of the Covid situation in Ho Chi Minh City which was the hardest-hit area in Vietnam. This has severely affected dealing activities for the past few months.

However, on a y-o-y basis, import volumes were down by 47% from 0.62 in Aug'20.

Market highlights

• Import volumes from US fall: The US supplied 0.12 mn t of ferrous scrap in Aug'21, a sharp drop of 57% as compared to 0.28 in Jul'21. The US steel producers registered a decline in exports to Vietnam as they were further interested in concluding deals with Turkey mills.
  
  
• Imports from Japan drop: Vietnam's scrap imports from Japan were recorded at 0.10 mn t in Aug'21, down by 47% against 0.19 mn t in Jul'21. Imports declined due to discrepancy in bids and offers owing to less inquiries as Vietnam mills showed low interest in booking at higher prices from Japan. Meanwhile, Japanese suppliers were active in trading in the domestic market. Hence, Vietnam buyers opted to adopt a wait-and-watch approach.
  
  
• Imported scrap prices from Japan largely stable: SteelMint's monthly price assessment for bulk Japanese H2 scrap stood at $494/t CFR Vietnam in Jul'21.
  
  
  

Outlook
Active Chinese buying of billets supported some bookings of imported scrap from the US and Japan. However, ferrous scrap imports are anticipated to pick up in the near term with possibilities of easing of lockdowns in the short term.