Vietnam’s scrap imports increase in July

Vietnam's ferrous scrap imports continued to rise in July, driven by firm domestic steel demand.

• Vietnam imported 514,000t of ferrous scrap in July, up by 2.8pc from June and by 39.4pc on the year, customs data show. Total imports for January-July reached 3.56mn t, up by 26.6pc on the year.
• Scrap inflows have held above 500,000t for six straight months, supported by steady government spending on infrastructure projects that buoyed domestic steel consumption. Many market participants expect demand to strengthen further in the final quarter of the year once the monsoon season ends, and into next year as additional steelmaking capacity comes online.
• Imports from Japan fell by 13.9pc on the month in July to 221,000t, though Japan remained Vietnam's largest supplier overall. Mills scaled back purchases as Japanese scrap was priced higher than containerised material when July-shipment bookings were made in mid-May. Vietnamese mills typically have lower demand from July to August due to seasonal slowdown.
• Meanwhile, US scrap supply rose as mills stepped up containerised scrap procurement. Vietnamese buyers also showed stronger interest in deep-sea bulk cargoes from the US during the first half of the year to meet demand from blast furnace mills.
• Among major origins, only Australian scrap saw a year-on-year drop over January-July, falling by 30.3pc, as suppliers diverted cargoes to South Asia where prices were higher and demand more consistent, market sources said.