In line with the negative trend prevailing in the global raw material and steel markets in past weeks, Pakistani buyers have continued to push for lower hot rolled coil (HRC) prices from their foreign suppliers. Moreover, after one major Pakistani re-rollers signed a deal at a level even lower than initially voiced average bids, other customers have started to exert pressure, rejecting new offers.
Accordingly, SteelOrbis has learned that one Pakistani re-roller has recently booked 20,000 mt of ex-Taiwan SAE1006 HRC at $770/mt CFR Karachi, for April shipment. “Alongside offers from Taiwan at $800/mt CFR Karachi, Turkey offered HRC to us at $770/mt CFR. However, we rejected both offers. I think the market is not strong enough and will decline further by at least $30/mt in the coming days,” another Pakistan-based producer stated. “An overly accommodating attitude just signals bearish sentiment as regards the future market prospects. I’ve heard that Taiwanese suppliers are ready to negotiate further $10-20/mt discounts on bookings over 20,000 mt of HRC,” a trader commented.
Prior to the abovementioned deal, Pakistani re-rollers purchased at least 35,000 mt of SAE1006 HRC in the range $780-800/mt CFR in early January.
Meanwhile, ex-China SS400 HRC is currently available at $650-675/mt CFR, market sources report.