Having replenished their inventories recently, most Pakistani buyers of hot rolled coil (HRC) have decided to adopt a wait-and-see stance and are closely watching the current developments in the global steel market. In addition, the situation in the end-user segments does not contribute to new HRC bookings. According to sources, sentiments in the markets of cold rolled (CR) and hot dip galvanized (HDG) coils have deteriorated lately, with end-buyers being more persistent in asking for discounts. “People had old stocks that were stuck due to the lockdowns and, since prices have climbed too high, the purchasing power of end-users has notably decreased,” the representative of a Pakistan-based re-rolling mill stated. Besides that, Pakistani HRC buyers are not in a hurry to conclude new bookings due to the availability of lower-priced material in the local market, market sources report.
In the meantime, import HRC offers from traditional Asian suppliers (based in Japan, South Korea, Taiwan) reportedly at $950-980/mt CFR have continued to remain unattractive for Pakistani customers compared to the relevant offers from other sellers. In particular, ex-Ukraine HRC is said to be available in Pakistan at $920/mt CFR.
Meanwhile, local retailers located in Pakistan are offering HRC with 2-4 mm thickness at around PKR 200,000/mt ($1,198/mt) ex-warehouse, while HRC with 5-12 mm thickness are available at approximately PKR 205,000/mt ($1,228/mt) ex-warehouse. All local prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 165.597