Vietnam imported 449,142mt of ferrous scrap in June 2020, up 20pc from the prior month, according to the country’s customs department. The country imported 373,401mt ferrous scrap in May 2020. This rise was driven by Japan, the leading ferrous scrap exporter to Vietnam. Imports rose 6pc from the same month the prior year.
In June, Vietnamese ferrous scrap imports from Japan increased by 76pc from the prior year. The second-largest supplier, US-supplied 50,106mt ferrous scrap to Vietnam in June, down 35.5pc from the prior June.
During Jan-June period, the average monthly scrap imports were 435,000mt and the annualized total is expected to cross 5.22mn mt in 2020. Average ferrous scrap import prices stood at $250-255/mt cfr Vietnam against $295-300/mt cfr Vietnam from the prior year.
In the first half of 2020, Vietnam imported 2.61mn mt of ferrous scrap, up 8.6pc from the prior year, according to the data available with Davis Index.
Japanese ferrous scrap prices remained very competitive as compared to other suppliers like the US and Australia in the May-June period resulting in higher purchases by Vietnamese steel mills. Imports from other major supplier countries such as Hong Kong, Singapore and Australia declined by 17pc, 42pc and 40pc, respectively from a year ago.
In May, Vietnam’s finished steel output grew to 2.08mn mt, up by 12.5pc from April but crude steel output had declined due to COVID-19 restrictions. However, rising ferrous scrap imports into the country indicate higher crude steel output in the coming days.