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[ferro-alloys.com]Buyers of containerized scrap in Vietnam are concerned the detection of "misdeclared" goods in two recent scrap import shipments will increase port delays by prompting stricter customs checks, market sources said Thursday.

Two separate shipments at Cai Mep port, one comprising five containers and the other 10 containers, that were declared as scrap metal were found to contain pallets of unused automotive brake discs and brake pads in their original packaging, Vietnam's domestic media reported.

"The shipments were declared as scrap metal and the auto parts were still unused and in wrapped boxes among the ferrous scrap," a Vietnamese trader said.

However, the companies involved in the importation maintain the autoparts were defective and were intended to be scrapped.

"The autoparts are solely meant for scrapping; we have already issued statements to the relevant parties to clear this misunderstanding," a source from the Singapore trading company involved, Stamcorp International, said.

Hella Australia, the company identified as the autoparts manufacturer on the packaging, issued a letter Wednesday clarifying that the brake discs and brake pads had been sold to a scrapyard in Melbourne due to manufacturing defects.

The latest customs discovery in containerized scrap imports reignites concerns among buyers that customs inspections and scrap import requirements will become even more stringent, market sources in Vietnam said.

It comes after cocaine was found in containers of ferrous scrap in July, which sparked more stringent customs inspections for scrap imports, and added to the already long delays, S&P Global Platts reported earlier.

POSCO SS Vina, the company the latest shipments were consigned to, and Stamcorp were assisting with the investigation, the Stamcorp source said. POSCO SS Vina officials could not immediately be reached for comment.

"This might just be an over-reaction as the parts were unfortunately found still in their packaging. And as we know, import scrap inspections here are becoming much more sensitive," a second Vietnamese trader said.

"Still, either way, this will cause container scrap buyers here to be more wary about the possibility of further delays due to inspections, dragging down buying interest for container scrap."

(S&P Global Platts)

• [Editor:王可]