Hot rolled coil (HRC) suppliers in Pakistan have decreased their offers in line with the global trend and especially given the continuous slump in prices seen in China due to declines in HRC futures prices in the country. However, despite the lower offers, trade in Pakistan’s HRC import market has remained rather slow due to the weak demand in the downstream sector.
More specifically, Chinese HRC suppliers have decreased their offers for SS400 HRC by around $10-15/mt week on week, with most offers for September shipment heard at $520-525/mt CFR levels. Besides, offers for ex-China Q195 HRC have been voiced at $515/mt CFR, down by $10/mt over the past week. According to sources, several deals for small tonnages have been reported at $520/mt CFR this week, though most Pakistani buyers prefer to refrain from purchases, anticipating new declines of around $5-10/mt based on the real market situation.
Meanwhile, offers for ex-China SAE1006 HRC have been estimated at $530-535/mt CFR for September shipment, down by $15/mt over the past week. Offers from Japanese suppliers have been assessed at $540/mt CFR, versus the deal price at $560/mt CFR heard two weeks ago.
As of July 24, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,573/mt ($491/mt), decreasing by RMB 95/mt ($13/mt) week on week, while down 1.08 percent compared to the previous trading day, July 23, according to SteelOrbis data.
