[China Iron Ore Brief Review] Domestic Concentrates Prices May Remain in the Doldrums Next Week

[Vietnam] Vietnam’s steel market remained relatively stable on August 21, with domestic construction steel prices ranging from USD 526–576/t, equivalent to around 531 USD/tonne EXW, while HRC prices stood at approximately 515–522 USD/tonne CFR Ho Chi Minh City. Despite higher input costs, particularly for coking coal, steel and iron ore prices continue to face pressure from weak downstream demand. The prolonged downturn in China’s property sector, a major source of global steel consumption, continues to weigh on international demand and profit margins, prompting some mills to reduce production to limit losses. The weak demand outlook is expected to remain a key barrier to a sustained recovery in steel prices in the near term.

[Flat products]Today HRC and other flat-product export prices were mostly steady day on day, with some prices up by 1 USD/tonne and HRC transactions concentrated in the 486-489 USD/tonne range. Market enquiries were reasonable today and some traders take an optimistic view of the outlook, keeping offers relatively firm, though actual deals were limited. [Billet]Today billet export FOB prices edged up by 2 USD/tonne, with Jiangyin port offers at 450-455 USD/tonne. According to market feedback, the futures market pushed basis-priced offers slightly higher today; prices are currently inverted, exporters show little willingness to sell at low levels, and the market has largely stayed on the sidelines, leaving deals unremarkable. [Rebar]Today rebar export offers at Tianjin port edged up by 2 USD/tonne, with overall transactions at 474-479 USD/tonne. According to exporters, the rally on the futures board lifted spot offers in step, but overseas end-users are largely on the sidelines with limited willingness to accept higher prices, leaving overall deals weak.

Vietnam’s Ministry of Finance is consulting on a draft National Assembly resolution to reduce corporate and personal income taxes for enterprises, business households and individuals, aiming to provide fiscal support during the economic recovery. Lower tax liabilities could improve working capital and help steel-consuming sectors manage high input and operating costs, while supporting investment in production and automation. For steel manufacturers and downstream companies, the policy could provide additional financial support for maintaining production and expanding capacity, although its impact will depend on clear implementation guidelines and simplified administrative procedures.