Vietnam’s import scrap market has lost the slight strength it gained last week amid the lack of steel demand in the country. As Vietnamese mills are reducing their production utilization capacities, their need for scrap is also declining. The Vietnamese steel market has been under pressure from the Chinese steel industry, especially since late in the third quarter. SteelOrbis hears that Vietnamese producers are focusing on purchases of domestic scrap instead of imports. Meanwhile, the holiday season is approaching in Vietnam, starting with the December Solstice on December 21 and then the Christmas holidays as of December 24.
Offers for Japanese H2 scrap to Vietnam have decreased over the past week from $335/mt CFR to $330-335/mt CFR. Buyers’ bids are still at around $320-325/mt CFR.
Ex-US bulk HMS I/II 80:20 scrap offer prices have declined by $10/mt over the past week to $350/mt CFR. Vietnamese mills’ ideas of a workable level for this grade are approximately $5/mt lower than the offers.