Vietnam: Imported ferrous scrap offers rise by up to $10/t w-o-w; buyers rely on domestic scrap

Imported ferrous scrap prices witnessed an uptrend w-o-w, with increases observed in US-origin HMS (80:20) and Japan-origin H2 bulk scrap. As per market participants, downstream domestic scrap demand was heard and supported by restocking inventory levels prior to the holidays this week.

Meanwhile, buyers noted that as imported scrap became more expensive, mills continued to rely on domestic scrap to manage material costs, despite limited local scrap supply.

As per supplier-side sentiments, Vietnamese buyers' demand showed mixed signals - neither particularly strong nor weak - while Taiwanese buyers stepped back, and South Korean buyers remained out of the market as usual.

Offers for H2 ranged from $378-$385/t CFR Vietnam, with bids at $368-373/t CFR and below. A northern Vietnamese mill bid $375/t CFR Vietnam for H2, seeking "special" quality from a specific supplier.

A deal for nearly 6,000 tonnes of H2 grade was concluded at $370-375/t CFR Vietnam, with traders indicating this price level could still be repeated for additional trades.

According to several buyers, USA and Australian-origin scrap offers stayed within the $390-$395/t CFR Vietnam range, generating limited interest. "There's no offer and no interest for US HMS (80:20)," noted one buyer.

H2 scrap indicatives were reportedly heard at $375-380/t CFR Vietnam, with a recent bid at $370/t CFR Vietnam as of last week.

Domestic market:

The domestic scrap market in South Vietnam remained stable, with type 1 or H2-equivalent 3-6 mm scrap prices holding steady at VND 8,800-9,000/kg ($347-355/t) as of 25 April, according to a mill source in Vietnam.

Another mill source noted that the market was quiet as some people had already gone on holiday, and they expect domestic scrap prices to stay range-bound with little change in the short term.

Outlook: Market participants anticipate prices to remain stable in the near term. According to mill sources, total materials imported in March were higher than in February. Some mills are keeping inventories low by limiting imports, creating a need for additional materials to maintain operations in the short term.