The situation in the Pakistan’s import hot rolled coil (HRC) market has not improved in the past week in terms of demand but has changed in terms of the price trend. More specifically, following a significant drop seen in deal prices for ex-China SS400 HRC last week, this week Chinese suppliers have decided to go higher, given better sentiment in the local and futures markets in China. However, other suppliers of SAE1006 HRC like those from Japan, Taiwan and South Korea have mainly been keeping their prices unchanged.
Specifically, after a few deals for ex-China SS400 HRC were signed in Pakistan at $510/mt CFR last week, down by $15/mt week on week, at the beginning of this week new deals have been reported at $525/mt CFR. Besides, by today, Wednesday, November 9, Pakistani customers have already reported offers coming at $530/mt CFR and some at even $540/mt CFR. This increase is mainly attributed to the futures price rebound in China, which by today have increased by RMB 68/mt ($9/mt) since Monday, November 7 and are up by RMB 110/mt ($15/mt) week on week, to RMB 3,686/mt ($508/mt), for delivery in January.
Meanwhile, offers for SAE1006 HRC from suppliers from Japan, Taiwan and South Korea have mainly been voiced at $550-560/mt CFR, the same as last week. Besides, according to market insiders, a deal for 20,000/mt ex-Japan HRC has been signed at $550/mt CFR, though this information has not been confirmed by the time of publication.
