Vietnam lowers interest rates, HRC and CRC prices trend sideways

In Vietnam, flat steel demand has been weak due to the tight monetary policy of the government and high interest rates. However, the government decided to lower interest rates last week.
 
State-owned Agribank, Vietnam's biggest lender by assets, last week reduced interest rates by 1-1.5 percentage points for all corporate clients. Exporters can now get short-term loans at 14.5 percent a year, while the rates for other companies range between 15.5 and 17 percent. According to the bank, the new interest rates will allow more companies to access loans, so that they can ramp up production.
 
In the meantime, hot rolled coil (HRC) and cold rolled coil (CRC) prices in the Vietnamese domestic market are trending sideways. Accordingly, HRC prices in Vietnam are standing at VND 15.6-15.7 million/mt ($750-755/mt), while CRC prices are at VND 18.9-19 million/mt ($908-913/mt), both including VAT.
 
On the other hand, Chinese HRC offers to the Vietnamese market are standing at $640-660/mt CFR, remaining unchanged as compared to last week.
 
$1 = VND 20,810