As trading and demand in the Vietnamese steel market remains sluggish, import scrap prices to the country continue to decline. “It is similar to the international trend. Demand is slow, prices are decreasing, and hence there are not many deals done by Vietnamese buyers,” a source reported. Particularly, Vietnam’s steel market is impacted by the negative changes in China. “Although we saw a bit of a recovery today [in the futures market on June 23], I am not sure it will be enough to have a good impact on the physical market,” the source added.
Prices for imported scrap have fallen mainly by $20-30/mt depending on the origin in Vietnam this week and some sellers have managed to conclude deals. The outlook has remained gloomy as customers have cut bids even more.
As scrap suppliers are searching for alternative destinations to Turkey, SteelOrbis has learned that an ex-EU deal has been done to Vietnam with HMS I/II 80:20 scrap standing at $400/mt CFR. The price is $20/mt below that for the same grade in a deal reported last week.
Following the ex-Hong Kong deal for HMS I/II 50:50 scrap by bulk to Vietnam closed at $420/mt CFR last week, offers from Hong Kong now for the same grade are at around $405/mt CFR. SteelOrbis has learned that buyers’ bids stand at $390/mt CFR.
Meanwhile, SteelOrbis has learned that Japanese suppliers’ H2 scrap offers to Vietnam are standing at $425-435/mt CFR, lower by $25/mt from last week’s offers. According to sources, last week a cargo for Japanese HS scrap was sold to Vietnam at $450/mt CFR.
While the steel industry is performing poorly, it is also observed that Vietnam is recovering in other segments after its strict pandemic measures. Even the Financial Times mentioned that Vietnam, Malaysia, Indonesia and the Philippines may “largely escape the stagflationary cycle of high inflation and cratering output. In four of the six biggest economies in the Association of Southeast Asian Nations, gross domestic product is rising faster than inflation”, a Financial Times analysis of government data has found.