While Vietnam’s import scrap prices continue to soften the country remains to be amongst the largest scrap importers in the region. The Vietnam Steel Association (VSA) has stated that Vietnam’s crude steel production reached an estimated 14.8 million mt in the first half of the year, up 21.2 percent year on year, while steel consumption increased 13.1 percent to approximately 17.9 million mt, providing a solid foundation for further growth, according to Vietnamese media reports. Despite this positive performance, the industry continues to face significant challenges from rising trade barriers, stricter environmental requirements and ongoing volatility in global markets. The new stage in the US-Israel-Iran war is also creating concerns about the additional indirect costs in the global scrap market.
Offers from the US West Coast to Vietnam for bulk HMS I/II 80:20 scrap has softened slightly from the $380-385/mt CFR to $380/mt CFR. There are no deals done from the USWC to Vietnam this week and lack of any new deals is exerting pressure on ex-US price offers.
As previously reported by SteelOrbis, containerized scrap prices at the US West Coast (USWC) continued to fall for a seventh consecutive week as HMS I/II 80:20 dropped by $5-10/mt to $305/mt FAS Long Beach port from $310-315/mt FAS last week. Sources have mentioned that they envision the price reaching $300/mt FAS by the end of the month and that $295/mt FAS could be the market bottom, as suppliers would be expected to draw the line and not issue offers below that level. Some offers at $310/mt FAS for the grade were not accepted.
Market sources report that an ex-Japan deal was done by Vietnam at $365/mt CFR for H2 grades, $5/mt lower than previous levels recorded during Kanto tender.
