Vietnam's 2021 ferrous scrap imports rose marginally against the previous year,as scrap demand was affected in the second half of the year from Covid-19 lockdowns and weaker Asian steel markets. Imports of ferrous scrap in December rose by 28pc from a month earlier to 574,000t, pushing intake for the full year up by 1.1pc from 2020 to 6.34mn t, Vietnamese customs data show. Scrap demand during January-July was supported by billet exports to China, with scrap imports during the period up by 32.5pc from a year earlier. But imports during August-December fell by 30.4pc as steel demand was subdued by lockdown measures over June-September. Scrap consumption had yet to recover even after easing lockdown measures in early October because steel production edged lower with a muted seaborne market. Japan remained the top supplier but was the only major supplier that experienced year-on-year fall in shipments. Limited vessel availability, surging freight rates to the export market, coupled with sustained demand and higher workable prices in the domestic market, prompted Japanese suppliers to allocate less quantity for the export market in 2021.
Vietnamese buyers sought supplies from other origins as Japanese scrap prices remained elevated for most of the time, pushing imports from the US and Hong Kong to both rise by more than 60pc in 2021. Imports from Singapore also doubled to 120,000t and was ranked as the fifth-largest supplier. Vietnamese steel producers were monitoring the development of the Omicron Covid-19 variant and also the Chinese government's plan for production curbs in 2022. Vietnam's scrap demand is expected to stay firm this year with rising steel production capacity, post-Covid infrastructure projects and steel mills' efforts to expand exports.