As a result of negotiations with foreign suppliers of hot rolled coils (HRC), one Pakistani re-roller has signed a deal for ex-Turkey material through a trader.
SteelOrbis has been informed of a fresh booking of 30,000 mt of ex-Turkey HRC for September shipment at $482/mt CFR LO, with initial offers from Turkey being mostly at $490/mt CFR. “There is sustainable support from the demand side. CRC and HDG prices have again been revised upwards in Pakistan,” the representative of the re-rolling mill said. The deal is stated to have been closed for a position cargo and not as a direct sale from the mill. Current offers from Turkey for HRC are at $470-475/mt FOB base, for October shipments. “If it is a fresh sale, hardly any mills would agree to sell at this level nowadays as there is no point in giving a level that much lower while the market is positive,” a Turkish trader said. The freight is estimated to be close to $47-50/mt, including the liner out cost.
According to market insiders, prior to the 30,000 mt booking, the overall volume of inquiries was for 50,000-60,000, mt. Hence, a few more bookings are expected soon. “Our negotiations are ongoing. Hopefully, we will sell 25,000 mt of HRC,” one flat steel supplier said.
In the meantime, market participants report that foreign mills are seeking to increase their price by $20-25/mt. The most recent HRC offers in Pakistan were voiced in the range of $490-500/mt CFR Karachi LC, as SteelOrbis reported earlier this week.