[Vietnam] Proposed Corporate Tax Cuts Could Support Steel and Manufacturing Cash Flow

[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.

SMC Trading Investment JSC (SMC) plans to issue shares to swap up to VND272 billion of debt and bonds, aiming to reduce cash repayment pressure, lower interest and financing costs, and strengthen its equity base. The move comes as SMC’s H1 2026 steel consumption fell 43% year on year to nearly 144,000 tonnes and net revenue dropped 37.3% to VND2.38 trillion, although the company returned to a net profit of nearly VND42 billion from a loss of VND81 billion a year earlier. The debt restructuring, together with asset disposals and debt recovery, is expected to improve SMC’s financial position and allow the company to refocus on its core steel trading and distribution business.