Vietnamese steelmakers maintained their scrap imports at steady levels since Augustas a persistently sluggish real estate sector led local mills to prioritise domestic scrap procurement.
Scrap imports have remained relatively range-bound and Vietnam imported 312,000t scrap in October, rising marginally by 2.9pc compared with the previous month, and 3.1pc higher on the year. Cumulative imports from January-October fell by 6.1pc on the year to 3.49mn t.
Mills maintained their production at approximately 40pc because domestic and seaborne steel markets showed limited improvement. Vietnam's largest steelmaker Hoa Phat produced 5.43mn t of crude steel, marking an 18pc decrease compared to the same period in 2022. Most steel mills concentrated on domestic scrap procurement, but a few large-scale mills continued importing.
Japan retained its position as Vietnam's primary supplier, contributing 44pc of total imports in October. The US, which is typically the second-largest supplier, fell to the fourth place and was surpassed by Hong Kong as local mills avoided purchasing deep-sea bulk cargoes from the US to avoid market risks in an uncertain market.Vietnam raised imports from neighboring country Cambodia by 11pc from the previous month to 18,000t in October, with volumes growing by 27pc to 146,000t in January-October.
Vietnamese scrap buyers entered the seaborne market in November as steel prices hit bottom, although the recovery in construction steel lagged behind flat steel products. Imported hot-rolled coil prices in Vietnam rose by $24/t from the end of October to $580/t on 27 November, while domestic rebar prices increased by around $6.20/t over 1-28 November.
Mills anticipate higher steel demand after the lunar new hear holiday, resulting in prospects of an uptick in demand for imported scrap in December as mills start to consider restocking.
