HRC buying in Pakistan on hold, market seeks clearer direction

Following increased discussions regarding the steel export duties imposed by the Russian government and the consequent growing uncertainty as regards the future trend of the hot rolled coil (HRC) segment worldwide, the main exporters of HRC to Pakistan have adopted a wait-and-see strategy. “The market seems to be holding on for now. I have heard just a few relevant offers,” an official of a major flats mill in Pakistan said. “We, in our turn, are also waiting for the market to take some direction,” the source added. Specifically, the most recent low-priced ex-Russia HRC sales to Asia have undermined the confidence of Pakistani customers as regards the duration of prices at high levels.

SteelOrbis has learned of a fresh offer for 10,000 mt of ex-China SAE1004 HRC to Pakistan at $994/mt CFR Karachi, with no takers so far. “Taking into account the restrictions announced by the authorities in China recently, prices may jump up to their earlier levels. Hence, it is quite complicated to extract firm offers from other Asian suppliers now. Everybody is waiting,” a Pakistan-based HRC seller commented. “Considering the recent developments in Russia and China, it seems prices will move up from current levels,” another Pakistan-based source stated.

Meanwhile, seeking to ease business conditions for Pakistani HRC buyers, the Pakistani government is about to lower import duties to five percent for all importers, regardless of the kind of activity and the specifications of import HRC. “In the case of non-alloy HRC imports, the re-rollers did not pay the regulatory duty. Now, it is being discussed that commercial importers may be exempted from regulatory duty too,” the source commented. The final decision on the matter is expected to be announced very soon.