Vietnam: Imported scrap trade expected to improve post-Tet holidays

The imported scrap market in Vietnam has been mostly silent amid the Tet holidays. Market sentiments were largely negative, and trading was almost absent as the majority of the participants are celebrating the upcoming Tet (Lunar New Year festival), which falls on 22 January.

However, participants expect the market to improve after the holidays.

Prices for imported scrap continued to move up on material scarcity. Meanwhile, suppliers kept their prices high due to rising domestic demand. In the recently-concluded Japan's bellwether Kanto Tetsugen scrap export tender, a total of 11,000 tonnes (t) of scrap was awarded, with the average price at around JPY 50,932/t ($387/t) FAS for H2 scrap, SteelMint learnt from sources.

Bid prices increased by JPY 3,364/t ($26/t) m-o-m compared to December. Prices have rebounded after two consecutive rounds of decline in the last two months.

• Offers for Japanese bulk H2 scrap surged to $430-435/t CFR Vietnam towards last weekend.
  
  
• Bulk offers for the mix of HMS 1&2 (80:20) and shredded scrap from the US were heard at $450/t CFR this week.
  
  

Vietnam's scrap imports decline: Vietnam's ferrous scrap imports stood at 3.6 mnt in CY22, down by 35% y-o-y compared to 5.7 mnt recorded in CY21. Japan was the largest supplier at 1.32 mnt followed by the US at 0.89 mnt. In December, 2022, ferrous scrap imports decreased by 17% m-o-m to 0.19 mnt compared to 0.23 mnt in November, 2022.

Interestingly, this is the third successive decline in its scrap imports, despite steel exports increasing significantly. The country's steel exports surged by 50% m-o-m to 779,816 t in December 2022 compared to 518,814 t a month ago.

Imported scrap prices are rising, and US suppliers expect these to go up even higher, backed by strong local and export markets. Furthermore, due to rising finished and semi-finished prices, domestic scrap prices in Vietnam have continued to rise.

Govt support to real estate: The real estate market had to face many difficulties in 2022. The government has taken a firm decision to support all real estate enterprises in 2023. For real estate-related businesses, the Prime Minister has requested to proactively restructure customer segments, products, prices, payment terms and methods to ensure better feasibility and convenience of customers, especially those with real housing needs.

South East Asia market overview

• Indonesia: Imported scrap prices to Indonesia rose significantly last week as well, but trade remained slow. The most preferred HMS 1 was heard at $425/t, whereas PNS/rebar mix prices were quoted at $445/t CFR, up by $15/t w-o-w.
  
  
• Thailand: Thailand's scrap prices firm up. Central America-origin HMS 1&2 (70:30) stands at $400/t CFR, while shredded offers were at $425-428/t CFR.