Vietnam: Imported ferrous scrap market remains sidelines amidst the ongoing lunar holidays

The Vietnamese imported ferrous scrap market remained quiet during the Lunar holidays, with limited activity reported by Vietnamese and South Korean buyers. The depreciation of the JPY against the USD further dampened sentiment for Japanese suppliers.

US-origin HMS (80:20) bulk scrap prices hovered at $406-410/t, while H2 indicatives stood at $398-402/t CFR Vietnam.

Some sellers aimed to clear inventory before the Lunar New Year, resulting in slightly lower prices, with US (80:20) containers below $375/t CFR, according to an India-based trader.

Taiwanese mill sources anticipated new deals and tradable levels to emerge after the Lunar New Year holidays till this weekend.

The Kanto export tender results were as expected, with major Asian markets closed for the Lunar New Year holidays. Market uncertainty persisted, leading to minimal bidding activity.

In 2023, Vietnam experienced a substantial increase in remittance volume, estimated to grow by 25-30% compared to 2022, according to the State Bank of Vietnam.

The State Bank of Vietnam's branch in Ho Chi Minh City reported a remarkable 43.3% surge in remittance volume, reaching nearly US$9.5 billion, the highest growth rate in the past decade, representing over 50% of the country's total remittance volume.

Vietcombank Remittance proactively responded to the rising remittance inflows by analyzing the labour export market and adjusting its strategies accordingly, ensuring efficient fund transfers back to Vietnam.

Outlook: Imports into Vietnam are projected to remain subdued throughout the current holiday season, while bulk prices from the US are poised to ascend owing to heightened booking rates from Turkiye.