Vietnam’s import scrap prices have moved up this week, while buyers have remained cautious amid the rising trend. The reciprocal tariffs planned by the US are expected to disrupt export demand across the Asia-Pacific (APAC) region, according to a report released by Moody’s Ratings on Thursday, February 27. The US plan, which aims to match tariffs with those imposed by its trading partners on US goods, has raised concerns over potential disruptions of global trade flows. Vietnam, which has recorded a trade surplus of $123 billion with the US, faces heightened risks of retaliatory action. According to the Vietnam Steel Association (VSA), the US is currently the third largest export market for Vietnamese steel, accounting for 13 percent of its total export turnover, following the ASEAN region and the EU. However, with several countries which faced lower tariff rates in the US in the past now facing the same 25 percent tariff, this may help Vietnamese mills to compete in the US market.
Over the past week, offers for Japanese H2 scrap to Vietnam have increased by $10/mt on the lower end and by $5/mt on the upper end to $325-330/mt CFR. Vietnamese buyers’ ideas for workable price levels for this grade are now at $320/mt CFR, up $5/mt week on week.
Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have also moved up, by $15/mt week on week to $360-365/mt CFR, though the gap between buyers’ price ideas and offers have increased once more to $20/mt.
Tokyo Bay FAS-based prices for H2 grade scrap have also moved up over the past two weeks, by JPY 500/mt to JPY 40,000/mt ($267/mt), with a $10/mt increase in dollar-based prices. This level shows that FOB prices are now at JPY 41,000/mt ($273/mt) for this grade.
Tokyo Bay HS grade scrap prices have increased by JPY 500/mt in the same period to JPY 46,500/mt ($309/mt) FAS, $10/mt higher. During the past two weeks, shindachi scrap quotations have remained stable at JPY 45,000/mt ($299/mt) FAS, up by $6/mt week on week.