Vietnam: Imported scrap trade continues to remains slow
Imported scrap prices in Vietnam have continued to drop amid slow buying activity due to holidays and a weak finished steel market in the country. Market sentiments are y...
Imported scrap prices in Vietnam have continued to drop amid slow buying activity due to holidays and a weak finished steel market in the country. Market sentiments are yet to picked up post-Eid holidays in major Islamic countries, including Turkiye. Hence, the global scrap market was bearish throughout last week.
The market remained quiet also due to the long weekend holidays for Labour Day and Reunification Day from 29 April to 3 May. Demand for finished and semi-finished steel products is muted due to weak construction activity.
Offers for Japanese material have lost $10-15/t since last week, coming down to $390-395/t CFR Vietnam for H2 grade. Buyers are still not ready to offer a firm bid for Japanese material.
No firm indications were received from US suppliers. However, buyers expect prices to decline further.
Vietnamese steel producers are more interested in domestic material, which is available for immediate requirements and has greater cost-effectiveness. Market participants believe that the imported scrap market in Vietnam will remain silent in the short term.
Vietnam's ferrous scrap imports stood at 490,487 t in March 2023, up 19% m-o-m compared to 413,289 t recorded in February. Imports have risen to nearly a 10-month high, as per SteelMint data. Japan was the largest supplier at 144,741 t, followed by Hong Kong at 40,654 t and Cambodia at 19,117 t. On a y-o-y basis, imports surged by 67% against 293,814 t in March 2022.