Vietnam: Ferrous Scrap Imports Up 30% in July

According to Mining News Pro -Vietnam – one of the fastest emerging steel markets in South East Asia has recorded rise of 30% M-o-M in its monthly scrap imports in Jul’18.

As per recently released customs data, Vietnam has imported 395,560 MT ferrous scrap in Jul’18 as against 304,668 MT scrap imports in Jun’18.

On yearly premises, ferrous scrap imports to Vietnam increased significantly by 49% Y-o-Y in Jul’18 as against 266,099 MT ferrous scrap imports recorded in Jul’17.

Vietnam’s crude steel production recorded  at 1.32 MnT in Jul’18, up 5.5% M-o-M as against 1.25 MnT in Jun’18 and up 36% Y-o-Y as against 0.97 MnT in Jul’17.

Japan remained largest scrap supplier to Vietnam - Japan remained largest ferrous scrap exporter registering fourth successive rise and occupying almost 38% share in total ferrous scrap imports to Vietnam. Japan supplied 151,162 MT ferrous scrap in Jul’18 which increased by 15% M-o-M as against 131,865 MT in Jun’18.

After witnessing fall in scrap imports from USA on import tariffs in May’18, Vietnam’s scrap imports from US have been rising since last two months. US scrap exports recorded at 74,050 MT witnessing 33% M-o-M rise in Jul’18 as against 55,802 MT in Jun’18 while it was recorded at 27,528 MT in May’18.

Followed by other prominent suppliers like Hong Kong (50,442 MT, +10% M-o-M) and Australia (25,719 MT, -3% M-o-M). UK witnessed a mammoth rise in scrap exports supplying 43,291 MT as against minor volumes in Jun’18. While Philippines and Netherlands supplied 9,609 MT and 6,931 MT ferrous scrap respectively.

In Jun-Jul`18, demand for scrap increased in Vietnam on rising production activities amid firm global scrap prices. On the outlook of rise in Japanese scrap prices during summer i.e Jul-Aug months, Vietnamese importers booked more scrap at almost stable prices in Jun-Jul’18.

Vietnam`s scrap imports from China plunge on stricter inspection - After cracked down of smuggling case in China, Vietnam has imposed stricter quality checking at ports, while most of the importers preferred to shift to other major scrap suppliers like Japan, USA and UK instead of China resulting in falling imports from China.

Vietnam scrap imports rose 13% Y-o-Y during Jan-Jul’18 on rising crude steel production - During first seven months of CY18, Vietnam imported 2.40 MnT ferrous scrap, up 13% Y-o-Y as against 2.12 MnT ferrous scrap imports during Jan-Jul’17.

According to World Steel Association, Vietnam witnessed 30% Y-o-Y growth in crude steel production during Jan-Jul’18. The country produced 7.54 MnT crude steel during first seven months of 2018 as against 5.81 MnT crude steel production recorded in the same period last year. Rising EAF steel output in Vietnam has led to surged scrap imports as compared with last year.

Country-wise Vietnam ferrous scrap imports –

Quantity in MnT,
Source : SteelMint Stats