The strong uptrend seen in the global HRC market and in Asia as well has also influenced the import market in Pakistan. Though buyers have mostly been cautious, some deals for ex-China HRC have already been done at above $900/mt CFR this week.
A position cargo from a trader for ex-China SAE1006 HRC has been sold at $875/mt CFR to Pakistan, up by $25/mt from a deal for ex-Indonesia coils reported last week. But sources said that this price level has already been assessed as being fairly low in the current conditions and some tonnages for ex-China SAE1006 HRC (from mills) have been traded at $910/mt CFR.
An offer from Indonesia was also at $910/mt CFR, versus a contract at $850/mt CFR last week.
No fresh offers have been reported for ex-Japan, ex-South Korea and ex-Taiwan coils as suppliers are trying to evaluate the market first, seeing a shortage of HRC in some parts of the world and high volatility. The previous tradable level for ex-Japan HRC was $900/mt CFR, but in the new market conditions it is expected to be at least $50/mt higher.
Though many customers in Pakistan are cautious in purchases, seeing a lack of fresh offers except from China and as they do not have strong support from the finished steel prices, they have decided to start HRC purchases at higher levels, feeling that the uptrend of prices will just accelerate in the coming weeks.
