The situation in Pakistan’s import hot rolled coil (HRC) market has started to change this week following the more positive sentiments amid Chinese suppliers caused by futures price increases in China. At the same time, suppliers from some other countries, like those from South Korea and Taiwan, have decided to reduce prices this week, while sellers from Russia have appeared with lower-priced HRC offers. Thus, trade activity has remained muted in Pakistan as the future market direction is still unclear.
Accordingly, Chinese traders, who were offering position cargoes at $665-670/mt CFR Pakistan last week, have increased their offers to $700-720/mt CFR for August shipment this week. Meanwhile, indicative offers for ex-China SAE1006 HRC have settled at $740-750/mt CFR, up by $10/mt week on week. This increase was driven by the sharp growth in futures prices, up by RMB 159/mt ($24/mt) on June 30, since Friday, June 24. “Chinese steel mills have increased production reductions and, with the implementation of the macro policy of stabilizing the economy, downstream demand is gradually recovering,” a representative of a Chinese mill told SteelOrbis.
In the meantime, suppliers from South Korea have decreased their offers to $765/mt CFR, down by $15/mt over the past week, while the indicative offers from Taiwan have settled at $750/mt CFR, compared to $780/mt CFR last week. Suppliers from Japan have remained out of the market this week. Meanwhile, Russian HRC suppliers have announced their offers for SAE1006 HRC to Pakistani buyers at $660/mt CFR for August shipment. However, despite the attractive price, no deals have been heard due to payment problems, according to sources. “Russian offers could be accepted but the issue is opening letters of credit. If some trader can manage LCs, then it would be a good deal,” a market insider stated.