<article><p class="lead">Vietnamese steelmakers increased their ferrous scrap imports in August, marking a significant recovery from low import levels in June and July.</p><p>Vietnam imported 310,000t scrap in August, surging by 43pc compared with the previous month, but still 5.6pc lower on the year. Cumulative imports from January-August fell by 6.8pc on the year to 2.87mn t. </p><p>The US is typically Vietnam's largest or second-largest supplier, but it slipped to fourth place in August. This decline was primarily because of subdued demand for deep-sea bulk scrap from the US. Imports of deep-sea bulk cargoes halted from June through August, customs data showed, as steelmakers preferred smaller tonnage short-sea bulk cargoes or containerised scrap.</p><p>August imports from Japan rose significantly by 56pc from July and 11pc from the previous year as shipments were previously in smaller quantities, ranging from 4,000t to 6,000t. </p><p>Imported scrap volumes are likely to remain at relatively lower levels in September, as many mills have delayed their restocking plans before the traditional peak season in the last quarter. </p><p>Vietnamese mills also continue to face lean and worsening profit margins as domestic rebar prices have remained suppressed from April to September. The central bank made interest rate cuts to boost liquidity in the real estate market, but the private housing sector has yet to show any signs of an impending rebound.</p><p>Many mills began increasing their domestic scrap collection prices in September, to counter rising imported scrap prices and stagnant steel sales.</p><p class="bylines">By Ji Xia </p></article>
