Vietnam: Steel mills adopt wait-and-watch stance amid global trade uncertainty

• US-origin scrap offers drop slightly
  
  
• Vietnamese mills seek competitive bulk cargoes
  
  

Vietnam's imported scrap market remained largely stable w-o-w, with offers confined to a narrow range amid limited bidding interest. Buyers stayed cautious, closely monitoring global trade tensions and tariff concerns before making procurement decisions. Weak domestic demand and a mid-week depreciation of the Vietnamese dong added further cost pressure for importers.

In the recent Kanto Tetsugen tender, Japan sold 15,000 t of H2 scrap at JPY 43,288/t ($298/t) FAS, down JPY 938/t from the previous month. However, the dollar-based price fell only $2/t due to yen appreciation.

This time, the shipment is booked by a Vietnamese mill, with an estimated CFR of around $330/t, matching current interest from Vietnamese mills seeking competitive bulk cargoes amid steady domestic demand and rising production costs.

Weekly assessments

• US-origin HMS 80:20 deep-sea bulk cargoes were assessed at $360/t CFR, down by $2/t w-o-w.
  
  
• Japanese H2 scrap edged up slightly by $2/t w-o-w to $332/t CFR Vietnam.
  
  

HS scrap offers to Vietnam surfaced at $367-368/t CFR, dropping slightly from last week's $370/t CFR.

According to market participants, H2 offers for CFR Vietnam were reported between $335-340/t, with tradable levels seen in the range of $327-330/t CFR Vietnam.

A trader noted, "The uncertainty surrounding Trump's tariffs has made short-term market predictions difficult. As a result, some mills are choosing to hold back on bidding and adopt a wait-and-see stance."

Offers for US-origin deep-sea cargoes were reported between $360-365/t CFR Vietnam. However, the bid of $350/t CFR Vietnam heard earlier in the week was no longer valid due to the recent bearish market sentiment.

Domestic market

Vietnam's domestic HMS (3-6mm thick) prices were heard in the range of VND 8,050-8,550/kg in the southern region, with a bid at VND 8,200/kg, and VND 8,600-9,150/kg in the northern region, all delivered to mills and excluding VAT.

HRC market softens as global tariff tensions weigh on demand

Vietnam's HRC market softened as US-led tariff chaos dampened sentiment. Chinese suppliers cut Q235 offers to $472-474/t CFR and SAE1006 to $485/t CFR for June shipments. Indonesia's Dexin dropped July SAE1006 offers to $527/t CFR, with FOB seen at $506-507/t. Japanese offers returned at $525/t CFR. Domestically, Formosa raised May-June prices to $522-531/t CFR, backed by AD duties on Chinese HRC. However, demand remains weak amid global uncertainty, with no fresh import deals and buyers showing interest at $470/t CFR.

Outlook

The near-term outlook points to a possible drop in offers, especially from Japan --Vietnam's key scrap supplier -- as the JPY strengthens. However, most Vietnamese buyers remain cautious, choosing to stay on the sidelines in the face of market uncertainty.