Although import hot rolled coil (HRC) offers in Pakistan have risen noticeably over the past two weeks and are expected to move up further, local buyers have largely opted to wait for Chinese suppliers to fully return to business before placing any new orders. Some of them are delaying their orders considering that post-Covid demand is not enough to support any long-term uptrend.
Meanwhile, almost all traditional suppliers of SAE1006 HRC from Asia are targeting $800/mt CFR Karachi in new deals with Pakistani buyers, with only a few traders being ready to sell ex-China SAE1006 HRC at $750/mt CFR Karachi and slightly below. HRC from Saudi Arabia is said to be available at $780/mt CFR Karachi, while ex-Turkey HRC is offered at $790/mt CFR Karachi. “The market is subdued at the moment, waiting for Chinese prices to gain clarity. Overall, prices are due for a further correction. However, I anticipate that a slowdown in demand may adjust prices down soon,” one importer in Pakistan stated.
At the end of the current week, SteelOrbis has learned of a booking of up to 10,000 mt of ex-Taiwan SAE1006 HRC at $790/mt CFR Karachi or slightly higher, while at the end of January the material was traded at $750/mt CFR Karachi.