Vietnam’s interest in import scrap purchases has recovered recently amid improved construction activities and the government’s efforts to support the economy. The Vietnamese government has announced a proposal to continue a two percent reduction in the value-added tax (VAT) starting July 1, 2025, until December 31, 2026. This reduction is aimed at lowering the VAT rate from 10 to 8 percent for certain goods and services, providing financial relief to consumers and stimulating economic activity. Also, according to Reuters, “Vietnam will cut its tariffs on several US products including LNG and cars, and moved to approve Starlink services, as the country tries to avoid being hit with US tariffs because of its large bilateral trade surplus.” Meanwhile, Japanese scrap prices for Vietnam have remained unchanged, but ex-US offer prices have moved up. Little appetite is observed for ex-US bulk cargoes, though a market source commented, “The Asian bulk market is moving up gradually. We guess it will go up after Ramadan as well.”
Over the past week, offers for Japanese H2 scrap to Vietnam have remained stable over the past week at $335-345/mt CFR. Bids from Vietnamese buyers are $10-15/mt lower than offers.
Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have moved up by $10/mt over the past week to $370-375/mt CFR. This price range is not attractive to buyers, SteelOrbis hears.
Tokyo Bay FAS-based prices for H2 grade scrap are currently at JPY 42,000/mt ($278/mt), showing that FOB prices are now at JPY 43,000/mt ($285/mt) for this grade.
Tokyo Bay HS grade scrap prices are at JPY 47,500/mt ($315/mt) FAS, while shindachi scrap quotations are at JPY 46,500/mt ($308/mt) FAS.
$1 = JPY 150.85