Vietnam: Imported scrap prices remain range-bound; steel mills cautious amid rising scrap offers

• Sellers remain firm, bid-offer gap widens
  
  
• Demand muted amid soft steel prices
  
  

Imported ferrous scrap prices in Vietnam edged up slightly by $2/tonne (t) w-o-w supported by improved sentiment following easing trade tensions between the US and China. Sellers remained optimistic, although cautious buyers kept their bids lower amid weak finished steel market trends.

Weekly assessments

• US-origin HMS 80:20 bulk was assessed at $340/t CFR, up $2/t w-o-w.
  
  
• Japanese H2 was assessed at $325/t CFR, up $2/t w-o-w.
  
  

Recent deals

• Japan-origin H2 bulk scrap offers for 8,000 t were reported at $325/t CFR Vietnam
  
  
• A separate offer for 5,500 t of Japan-origin H2 scrap was also heard at $325/t CFR Vietnam
  
  

Market commentary

Vietnamese steelmakers stayed cautious about accepting higher scrap offers as sluggish demand and weak downstream steel product prices continued to weigh on buying sentiment.

A mill executive informed: "Offers for Japan-origin H2 scrap in bulk were reported at $325-328/t CFR Vietnam, with bids ranging from $315/t to $320/t. Sellers' tradable levels stood between $320/t and $325/t."

A trader noted, "Demand remained subdued due to the wide bid-offer gap, while some market participants continued to monitor the impact of a minor fire incident at a Vietnam-based blast furnace in early May."

Finished steel prices in southern Vietnam remained mostly stable, with only a few mills making slight upward adjustments, according to local sources.

A Japanese supplier mentioned that HS scrap offers softened to $355/t CFR, while bids remained at around $344/t CFR.

Domestic scrap market

• North Vietnam: Domestic scrap bids rose slightly w-o-w to VND 8,500-8,900/kg ($327-339/t), excluding VAT.
  
  
• South Vietnam: Prices ranged from VND 7,700-8,000/kg ($304-331/t) excluding VAT, down from the previous week.
  
  

Vietnam's Hoa Phat Group temporarily shut down its blast furnace at the Dung Quat complex following a fire incident, causing a short-term billet shortage in the northern region. Finished steel prices rose by around $6-7/t early in the week, though local traders noted the overall market impact was limited.

Vietnam revises anti-dumping duty on Chinese HRC

Vietnam's Ministry of Industry and Trade revised anti-dumping duties on Chinese hot-rolled steel, maintaining rates from 19.38% to 27.83%, with a new 27.83% duty on Win Faith Trading Limited. Effective since March for 120 days, the measures are intended to protect local producers amid rising Chinese exports. Indian exports remain minimal and have been excluded.

Outlook

Vietnam's scrap market is expected to stay cautious as buyers balance current prices with weak downstream demand. Blast furnace shutdowns or trade tensions may impact prices in the short term. Sellers remain firm, keeping the bid-offer gap wide. With weak demand and stable pricing from key players like Baosteel, Vietnam's HRC prices are likely to remain rangebound. However, Formosa's recent price cuts have intensified competition in the domestic market.