This week, new offers for imported HRC have kept decreasing in Pakistan, mainly given the continuous bearishness in China amid the further drop in HRC futures prices. At the same time, trade activity has remained in general rather weak, with almost all offers coming from China, while other suppliers like those from South Korea are still out of the market or, as in the case of Japan and Taiwan, have announced offers which are too high for Pakistani customers.
Specifically, offers for ex-China HRC have varied widely this week, with offers from non-VAT traders for Q195/SS400 HRC coming at around $545-555/mt CFR, down by $10/mt week on week, while offers from first-tier mills have been voiced at above $570/mt CFR level. Besides, according to sources, a deal for 5,000 mt of ex-China SAE1006 HRC from a large mill is reported to have been signed at $610/mt CFR this week, while offers from traders for SAE1006 coils have settled at $580-585/mt CFR for March shipment, down by $5/mt week on week.
As of March 1, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,885/mt ($540/mt), decreasing by RMB 20/mt ($2.8/mt) to February 23, while indicating a decline of 0.61 percent compared to the previous trading day, February 29.
At the same time, offers from suppliers from Japan have been voiced at $635/mt CFR for end-of-April shipment, but, according to sources, they have been rejected by Pakistani buyers. Offers for ex-Taiwan HRC have been reported at $620/mt CFR for April shipment, with no deals reported so far, while suppliers from South Korea have been staying away from the Pakistani market for the past few months.
