Given the continuous fluctuation in the Chinese HRC futures prices, after deal prices for ex-China HRC dropped last week, this week prices have been showing upward movement, which has resulted in new deals. Other suppliers, however, have mostly been out of the Pakistani market, though, according to buyers, indicative offers for ex-Japan HRC have been estimated at lower levels as compared to deal prices two weeks ago.
More specifically, after around 5,000-8,000 mt of ex-China SS400 HRC were sold last week at $550-555/mt CFR, this week a new deal for 2,000 mt has been signed at $565/mt CFR for end-of-October shipment. Meanwhile, most offers for ex-China SS400 have been voiced at $560-565/mt CFR, down by $5-10/mt week on week, and the same as two weeks ago.
Furthermore, another deal for 10,000 mt of ex-China SAE1006 HRC has been signed at $580/mt CFR, rolling back to offer prices reported two weeks ago.
The increase was mainly driven by better sentiments in China caused by the higher HRC futures prices during the past week. However, by Thursday, September 21, HRC futures prices have dropped again by RMB 89/mt ($12/mt) from the previous day to RMB 3,843/mt (538/mt). “From the beginning of this week, Chinese futures prices were showing a recovery, pushing export offers higher in new deals in Pakistan, but today we see them [futures] falling again, so a further rise is really doubtful,” a market insider said.
At the same time, other HRC suppliers have been mainly staying out of the Pakistani market, though, according to sources, indicative offers for ex-Japan SAE1006 HRC have been estimated at $590/mt CFR, down by $15-20/mt from deal prices two weeks ago.