Posted on 22 Jun 2021
Vietnam's ferrous scrap imports rose to a five-month high in May driven by buyers' restocking and upward price momentum in January-April.
Imports in May increased by 18.2pc to 708,326t from April, Vietnam customs data show, the third highest volume on record and the highest since a record high in December. January-May imports rose by 26.7pc on year to 2.75mn t.
Vietnam has been China's biggest supplier of semi-finished steel this year, driving up its scrap requirement for steelmaking. China has turned to billet imports to fill gaps in domestic supply, especially in Tangshan where production curbs have cut supply. But Vietnam's scrap imports are unlikely to stay at such a high level with demand into China and domestic markets under pressure. Vietnam's rainy season and growing Covid cases and lockdowns have reduced its steel demand this month, sending its steel prices lower. Billet export to China fell sharply after Beijing started to curb "irrational" commodity price increase since mid-May.
All origins increased shipments to Vietnam sharply on year because imports last May were at the low end of 2020 monthly volumes.
Japan is the only supplier to reduce shipments to Vietnam so far this year. Japan's domestic demand has been strong, leading its suppliers to allocate more tonnage to the domestic market where mills are willing to pay a competitive price. A lack of availability and uncertain freight markets have reduced suppliers' appetite for exports.
Imports from Australia increased by 124.8pc on the month and by 124.7pc on the year as its sellers turned away from sales into south Asia where demand has collapsed from Covid lockdowns and port congestion. Australia's suppliers rushed to sell delayed cargoes to other parts of Asia to avoid growing a backlog of shipments.
Source:Argus
