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Vietnam increased more than 50% of scrap steel imports in August

19/09/2022 6:22 PM

Although the import volume of steel scrap increased again in August, it was still lower than the average monthly import volume because the demand for steel products continued to weaken.

In Vietnam, because the domestic supply of steel scrap only reaches nearly 40% of demand, steel mills have to use 60% of imported steel scrap to meet production requirements.

According to statistics of the General Department of Customs, Vietnam's scrap import volume in August 2022 reached about 329,000 tons, up 51.6% comparing to previous months and nearly 11% over the same period last year.

Generally, in the first 8 months of the year, the amount of scrap steel imported into Vietnam was at 3.08 million tons, down 32% compared to the same period in 2021.

It is known that the biggest steel scrap suppliers in Vietnam are Japan, the US, Australia, and Hong Kong. In which, Japan is the largest supplier of steel scrap of our country in August with 121,196 tons, down 22% over the same period. Since the beginning of the year, the amount of steel scrap imported from this country reached 891,000 tons, down 48% compared to the same period in 2021.

Similarly, the decline in imported steel scrap during this period also appeared in the US and Australian markets.
In the market, according to the most updated data of the Vietnam Steel Association, the price of scrap steel material recorded a sharp increase during this period. Specifically, domestic scrap steel price in August increased from 400,000 to 700,000 VND/ton, currently at 8.9-10.1 million VND/ton.
Meanwhile, the price of scrap steel HMS 1/2 80:20 imported to East Asia port was adjusted up by 70 USD/ton compared to August, at 440 USD/ton at September 6.
Recently, Vietnam's steel billet export business continued to be interrupted due to the flow of cheaper materials from Russia, Iran and Indonesia into the Southeast Asian market. Besides, domestic steel demand is also limited by the rainy season in summer and tighter credit to the real estate industry.

With the price of scrap - input materials in steel production increasing again, construction steel companies recently adjusted to increase selling prices for the third time in a row on September 13 with the highest increase of up to 880,000. VND/ton.

For example, with Hoa Phat steel, selling price was adjusted to increase by 400,000 VND/ton for coil CB240, while D10 CB300 rebar remained unchanged at 15.12 million VND/ton in the North. Accordingly, the new selling price on September 14 of these two types of steel is VND 15.22 million/ton and VND 15.43 million/ton, respectively (excluding VAT).
Currently, the selling price of construction steel is fluctuating in the range of VND 15-16.5 million/ton, depending on steel type and brand.

Source: cafeland.vn

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