The downward pressure Vietnamese steelmakers were exerting on import scrap quotations for some time has succeeded this week. With the absence of South Korean buyers in the market as well as the relatively stable trend observed in Japanese market, Vietnamese buyers have managed to close deals with significantly lower price levels. Import scrap prices have decreased to the levels Vietnamese buyers have been voicing for some time and then moved down further. There is potential of a further decline in Vietnam’s scrap prices ahead of several holiday starting with the Reunification Day on April 30 and ending with Labour Day on May 3. Japan also has Golden Week holidays during April 29-May 8.
SteelOrbis has learned that ex-US bulk HMS I/III 80:20 scrap was sold to Vietnam at $600/mt CFR this week which is significantly lower from the offer levels of $625-630/mt CFR reported last week.
Meanwhile offers from Japan to Vietnam for H2 grades have also decreased to $600/mt CFR from $615-630/mt CFR, week on week via deals. These levels from the US and Japan in deals show that sellers have accepted Vietnamese buyers’ targeted levels and reduced their prices further.
Meanwhile, ex-Hong Kong HMS I/II 50:50 scrap has been sold to Vietnam at $590/mt CFR. Hong Kong was out of Vietnamese market for some time, the current price levels are $15/mt lower than the levels recorded on March 23.
According to local news agencies, Vietnam’s deputy prime minister Le Minh Khai recently signed a resolution outlining the action plan to restructure the economy up to 2025. The resolution aims at providing an appropriate and efficient structure for each sector and industry, linking them to the economy. The country aims at raising labour productivity by an average of over 6.5 per cent annually. The increasing contribution of the private sector is anticipated to hit 55 percent of GDP. The aim is to have about 35,000 cooperatives by the end of 2025, of which more than 3,000 will be high-tech collaborations.