Vietnam: Imported ferrous scrap market remains dull on limited activities w-o-w

In Vietnam, the imported ferrous scrap market remained inactive due to limited offerings from the US and Japanese suppliers for HMS (80:20) and H2 scrap respectively.

Despite this silence, market participants believe that prices are unlikely to decline, largely due to support from raw material costs and government policies.

Recent developments indicate bids for HMS (80:20) at $375/t, with Japanese suppliers quoting $400/t. However, the lack of interest from Vietnamese buyers persists for the latter offer.

Domestic market overview

Turning to the domestic market, local demand continued to be weak due to the current seasonal lull and excessive rainfall in Vietnam. Notably, bids within the country for domestic H2 equivalent stand at VND 9,300/kg ($387/t), with delivery to northern region mills.

In contrast, the Thai markets maintain stability, as no firm offers emerge for US-origin bulk HMS (70:30). Recent Australian HMS and shredded deals, on the other hand, have been concluded at $389/t and $410/t, respectively.

VN-Index returned to 1,200 points: The VN-Index has returned to the 1,200-point mark, closing at 1,201.72 points - a noteworthy increase of 18.35 points (1.55%) compared to the prior session. This surge represents the most significant rise in over 5 months. The VN30-Index also demonstrated robust growth, climbing over 19 points (1.63%) to reach 1,213.4 points. Meanwhile, on the Hanoi Stock Exchange (HNX), both the HNX-Index and UPCOM-Index have witnessed nearly 1% increases.

Outlook: Looking ahead, participants anticipate a subdued market due to sluggish domestic steel demand, which might persistently dampen scrap consumption, thereby sustaining limited interest among imported scrap buyers. Conversely, Japanese sellers are not expected to reduce their offers in the near-term, largely influenced by the depreciation of their currency.