Virus to limit Vietnam’s ferrous seaborne trade
Ferrous scrap and finished steel traders expect Vietnam's efforts to contain the coronavirus will reduce its import demand, or at least send prices lower to sustain it.
Vietnam's steel industry is forecasting that domestic steel demand could fall by 35pc and exports fall by 20pc if the outbreak continues.
Vietnam's spot purchases of steel imports are likely to remain slow until the end of March, but buyers could come back in April for May-June shipments, Vietnam-based traders and buyers said. Inventories may bottom out by then if spot purchases remain stalled, or buying could re-emerge if seaborne prices are low enough to attract interest.
Some Vietnam-based hot-rolled coil buyers have asked for shipments to be postponed because they anticipate sales of finished steel products into Europe and US to slow down.
Vietnam steel mills will try to reduce costs. Iron ore and coking coal purchases are mostly in index-linked contracts, limiting their ability to reduce these costs. But mills can target ferrous scrap spot purchases.
Vietnam imported of 4.9mn t of ferrous scrap in 2019. Its largest supplier is Japan, with 45pc market share at 2.2mn t, followed by the US at a 26pc share at 1.3mn t.
Japanese scrap suppliers will have to face the pressure of Vietnamese mills asking for lower prices in the short term. Suppliers will have to compete with one another for sales into Vietnam as the requirement for scrap will shrink if mills are unable to move their products domestically on weak demand. Competition between Japan and the US for market share could pressure prices lower, scrap buyers said.
By Terry Chuay and Xia Ji
source: Argus Media
Top News
Five last month
Two last year
US Energy Dept finalizes $2.26bn loan for Lithium Americas’ Nevada mine
Abandoned copper mines embraced as fast track to boost output
Glencore posts lower metals output for first nine months, reiterates outlook
Mercuria eyes equity in African assets, new metals boss says
Solidcore to buy 55% stake in Kazakhstan’s Syrymbet tin deposit for $82.5m
Traders see gold as a surefire bet as coin-toss election looms
Gold price surge adds glitter to tarnished miners
Environmentalists sue over US approval of ioneer’s Nevada lithium mine
Gold price shows little reaction to jobs data
St Barbara raises $73m to fast-track Simberi sulphide production
Copper price sees biggest drop since May as Trump’s win boosts dollar
Sibanye agrees wage deal for its gold operations, union says
China’s industry ministry plans to step up lithium, cobalt, nickel exploration
Liberty Gold advances Black Pine project permitting
China zinc smelter group sets processing fees for Q1 2025
Brazil prepares to remove illegal Amazon gold miners from Munduruku land
Anglo American sells Australian coal JV stake for $1.1 billion
Solidcore to buy 55% stake in Kazakhstan’s Syrymbet tin deposit for $82.5m
Ecuador to reopen mining register for first time in over six years
St Barbara raises $73m to fast-track Simberi sulphide production
Copper price sees biggest drop since May as Trump’s win boosts dollar
Sibanye agrees wage deal for its gold operations, union says
China’s industry ministry plans to step up lithium, cobalt, nickel exploration
China zinc smelter group sets processing fees for Q1 2025
Brazil prepares to remove illegal Amazon gold miners from Munduruku land
Anglo American sells Australian coal JV stake for $1.1 billion
Solidcore to buy 55% stake in Kazakhstan’s Syrymbet tin deposit for $82.5m
Ecuador to reopen mining register for first time in over six years