Vietnam: Imported scrap market mute on slow enquiries w-o-w

The Vietnamese scrap market has witnessed a decline in domestic prices due to reduced procurement activity by mills. Hence, mills abstained from participating in both the seaborne and domestic scrap markets. The diminished demand from mills has consequently led to a downtrend in scrap prices within Vietnam.

Offers for US-origin bulk HMS 1&2 (80:20) remained unchanged at $390/t CFR Vietnam, while Japan-origin H2 bulk scrap offers were heard at around $365-370/t CFR, slightly down w-o-w.

A major hurdle persists in the form of thin Japanese scrap supply, coupled with a lack of buying interest from Vietnamese and South Korean markets.

Additionally, South East Asia's imported billet prices experienced a decline this week due to low buying interest and subdued demand for finished steel in the region, as noted by SteelMint.

Vietnam's billet export offers inch down: Vietnam's billet export offers have slightly decreased, with BF-grade billet export offers declining by approximately $20/t w-o-w to $470/t FOB. The weakened end-user demand has resulted in reduced interest from Vietnam's steel mills.

Other updates

• Vietnam province eyes port for $2.3 billion steel plant project: Authorities in Vietnam's central coastal province of Binh Dinh are seeking central government's approval for a port at a significant steel complex project worth 53.5 trillion dongs ($2.3 billion).
  
  
• Steel demand in the six ASEAN countries to increase by 3.4% in 2023: According to data released by the South East Asia Iron & Steel Institute, steel demand in the six ASEAN countries (Vietnam, Indonesia, Thailand, the Philippines, Malaysia, and Singapore) is expected to increase by 3.4% in 2023, reaching 77.6 million tonnes (mnt).
  
  

Similarly, Thailand, another emerging Southeast Asian scrap buyer, is currently inactive in the market. However, new bookings might resume around mid-June according to some market participants.