Spike in steel output and high finished steel prices including hot-rolled coil have encouraged steel mills to book more ferrous scrap in Vietnam. In August 2020, the country imported 683,340mt of ferrous scrap, up by 30.9pc from July while imports rose 7.2pc from the prior year. As per customs data, imports have hit 2020’s record high in August.
In August, Japan was the largest supplier of ferrous scrap to Vietnam. In August, import from Japan rose by 23.7pc to 319,569mt from July and by 35.8pc from prior year. Imports from the US rose by 62.7pc from July to 148,907mt in August. However, imports from the US dropped 22.2pc from the prior year.
Australian ferrous scrap exporters preferred Vietnam as a major destination due to weak demand from other importers. Australia supplied 51,434mt in August 2020, up 309pc from a month earlier.
Vietnam’s imports in August
|Country||Aug||M-o-M % change||Y-o-Y % change||Jan-Aug’20||Y-o-Y % change|
During the January-August period, Vietnam imported 3.83mn mt scrap, up by 8.5pc from the prior year. Vietnamese mills also resumed bulk cargo bookings in June-July when Japanese H2 prices rose amid short supply.
According to the Vietnam Steel Association (VSA), Vietnam steel output increased to 2.35mn mt in August up 36pc from July. Vietnamese steel mills witnessed a recover in demand for HRC in the export market when Chinese mills curtailed exports to meet its own domestic demand.