Cut production, Vietnam is hesitant to import scrap steel

According to statistics from Japan Customs, Japan exported about 623,000 tons of scrap steel in September 2022, up 26% compared to August and up 33.6% over the same period last year.

Generally in the first 9 months of this year, Japan's scrap steel exports reached about 4.7 million tons, down 19.2% over the same period in 2021.

It is known that Vietnam is the second largest importer of Japanese scrap in 2022, after South Korea. Specifically, the amount of scrap iron and steel from Japan pouring into Vietnam has recently increased. Specifically, in September, this item imported to Vietnam reached nearly 148,000 tons, up 29.3% over the same period.

However, due to the weakening of steel production and consumption in recent years, the amount of scrap imported from Japan has decreased markedly. After 9 months, Vietnam imported about 1.05 million tons of iron and steel scrap from this country, down sharply by 42% over the same period last year.

Currently, iron and steel scrap is allowed to be imported into Vietnam for recycling and production input. Many enterprises operating in Vietnam's iron and steel industry use scrap iron and steel for the heating and smelting stages of cast iron to create new products.

In the market, the domestic scrap steel price in September 2022 increased from 400,000 to 700,000 VND/ton, currently at 8.9-10.1 million VND/ton, according to data of the Vietnam Steel Association.

Meanwhile, the price of scrap steel HMS 1/2 80:20 imported to East Asia port was adjusted down by 35 USD/ton compared to September, at 405 USD/ton at the time of 6/10.

With the price of scrap steel and some other input materials in steel production fluctuated unpredictably, a number of domestic steel enterprises announced the adjustment of construction steel prices 3 times in October with a decrease of 610,000. - 970,000 VND/ton.

Currently, steel prices are fluctuating around 15 million VND/ton, depending on steel type and brand, but still higher than at the beginning of the year.

With the domestic steel industry, because the domestic supply of scrap iron only reaches nearly 40% of the demand, businesses must use 60% of imported scrap iron and steel materials to meet production requirements.

It is expected that in 2022, Vietnam has to import many types of materials for steel production such as iron ore for blast furnaces about more than 18 million tons, scrap steel about 6 - 6.5 million tons for electric furnaces and coal. coking about 6.5 million tons and graphite electrode about 10,000 tons.

Vietnam real estate