This week, new offers for import HRC have recovered in Pakistan, mainly given the improved sentiments in China amid rises in HRC futures prices in the country. At the same time, trade activity has remained in general rather weak, with almost all offers coming from China and Japan, while other suppliers, including those from Taiwan and South Korea, have been out of the market for a couple of months.
Specifically, offers for ex-China HRC have varied widely this week, with offers from Chinese traders for Q195/SS400 HRC heard at $480/mt CFR, following a deal at $475/mt CFR at the end of last week, while offers for SS400 HRC from mills have been voiced at $490/mt CFR. Furthermore, offers for ex-China SAE1006 HRC have been estimated at $505/mt CFR, up by $10-15/mt over the past two weeks.
Meanwhile, according to sources, a deal for around 25,000 mt of ex-Japan SAE1006 HRC has been signed at $510/mt CFR for November shipment, following offers at around $520/mt CFR last week. “With better sentiments in China, Japanese suppliers are likely to increase their prices to $520/mt CFR and above for Pakistani buyers,” a market insider told SteelOrbis.
As of September 25, HRC futures at Shanghai Futures Exchange are standing at RMB 3,306/mt ($471/mt), increasing by RMB 110/mt ($16/mt) or 3.4 percent since September 18, according to SteelOrbis’ data.
