By the end of September, almost all overseas traditional suppliers of hot rolled coil (HRC) to Pakistan have decided to slightly increase their offers. Pakistani buyers, in their turn, have not been in a hurry to book material, preferring to watch market developments closely. “The continuous devaluation of the Pakistani rupee and political instability have been affecting trade. Besides, the last time local producers of CRC and HDG announced the revision of their prices was in August,” a market insider said. Thus, only occasional deals for ex-China SS400 HRC have been reported in the market.
Specifically, market insiders have reported a deal for 15,000 mt of ex-China SS400 HRC signed by local pipe maker at $585-590/mt CFR at the end of last week. Meanwhile, this week, offers for ex-China SS400 coils have been reported at $590-600/mt CFR, up by $5-10/mt week on week and up $10-20/mt over the past two weeks. At the same time, offers for ex-China SAE1006 HRC have been heard at around $610-620/mt CFR, though no deals have been reported so far.
In the meantime, suppliers from Japan have increased their offers to $630/mt CFR, compared to $620-630/mt CFR last week, while offers for ex-Taiwan and ex-South Korea HRC have been voiced at $620/mt CFR, the same as last week. “Business activity is still very limited, and most buyers are expecting local flats producers will come up with new official offers. The last price revision was done on August 17, but we know that most mills are offering discounts to push sales,” a market participant told SteelOrbis.
