[SMM Steel] Vietnam import scrap weakens amid softer East Asian sentiment

The European Union has drastically reduced its steel import quota cap by 12 million tonnes, slashing the total limit from 30.5 million tonnes to 18.3 million tonnes. This policy shift heavily impacts Turkey, cutting its hot-rolled coil (HRC) allocation by approximately 60% to 642,295 tonnes and rebar by over 36% to 239,676 tonnes. Additionally, the restriction alters global supply dynamics, forcing around 8.5 million tonnes of East Asian steel to find alternative global markets annually. While European steel prices are expected to rise briefly following the July 1 customs clearance, weak summer demand will likely cap these gains. In the scrap market, tight European domestic supply has pushed dockside delivery prices to €275/tonne, with German delivered prices sitting €10 to €15/tonne higher than Netherlands dockside rates; however, weakened Turkish steel sales will ultimately exert dominant downward pressure on the market. Meanwhile, US export prices have fallen by $30/tonne and US East Coast dockside prices dropped by $15 to $20/gross ton. Although two major Turkish mills temporarily stabilized import prices by heavily restocking 16 cargoes at higher rates, a subsequent purchasing pause is expected to trigger further downward adjustments.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 01 Jul , 2026

Indian rebar producer VMS TMT has approved a merger with Aditya Ultra Steel to build a more integrated manufacturing base and improve operational efficiency. The deal remains subject to statutory approval. The merged entity will consolidate its Gujarat operations and “Kamdhenu”-branded rebar ecosystem, with combined annual capacity of around 300,000 tonnes and a dealer network of about 300, supporting procurement, production, logistics and distribution synergies.