Vietnam’s import scrap market has moved down by another $5/mt over the past week. As the international scrap market is declining at a fast pace, Asia has followed suit. The lack of steel demand and also the lack of interest shown in import scrap amid ongoing uncertainties surrounding global trade are forcing Vietnamese producers to be cautious. Since early February, the local Vietnamese currency, the dong, was losing strength against the Us dollar, but it is now recovering as the dollar weakens. Meanwhile, market sources also report that the fluctuation of the dong-dollar exchange rate is creating an obstacle for healthy transaction activity.
Over the past week, offers for Japanese H2 scrap to Vietnam have moved down another $5/mt on the upper end to $330-335/mt CFR. Bids from Vietnamese buyers are $3-5/mt lower than the offers.
Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have moved down by $5/mt over the past week to $360-365/mt CFR.
According to SEAISI, Vietnam’s domestic finished steel demand and production are forecast to remain strong in 2025. Vietnam’s steel production is expected to grow by 8-10 percent this year to around 31 million mt, while domestic demand is projected to rise by 4.5 percent to 24.5-25 million mt. Vietnam Steel Association chairman Nghiem Xuan Da told delegates at Kallanish Asia Steel Markets 2025 in Ho Chi Minh City on Wednesday, "This growth is supported by a resilient domestic economy, increased infrastructure investment, and strong regional partnerships.”