HRC buying at standstill in Pakistan, but import prices rise

Business activity in Pakistan’s hot rolled coil (HRC) market has dwindled to almost zero, affected by a subdued automotive industry. According to the Pakistan Automotive Manufacturers Association (PAMA), no new vehicle sales or production were registered in April and the same situation is likely to be observed in May. Consequently, contractors in all related segments and, in particular, in the hot rolled coil segment, have become more cautious towards new deals due to low demand and cash flow problems.

However, some foreign HRC sellers have increased their offers for July shipments to Pakistan following the trend in the global market. The new prices for SAE 1006 HR coils from Taiwan, South Korea and Japan are voiced at $415-425/mt CFR LO Karachi, up $5-15/mt over the past week.

In the meantime, most Chinese suppliers of boron-added SS 400 HRC have increased their prices to $430/mt CFR LO Karachi, but it is still possible to find $420-425/mt CFR LO Karachi. Ex-China SAE 1006 HRC has been heard at $430-440/mt CFR LO.

The negative outlook in the short term due to Ramadan is causing concerns among the main HRC buyers in Pakistan. “Local mills resumed their production operations from this Monday, but still demand is traditionally slow amid the month of Ramadan. Moreover, we are stuck with slow cash flow now and will not import any material until it is steady”, a Pakistan-based customer told SteelOrbis.