Prices for import HRC in Pakistan have been fluctuating within a limited range over the past three weeks amid low demand, putting pressure on major exporters. While most Chinese sellers have been voicing offers at almost the same level, with fluctuations hardly exceeding $5-8/mt, some other Asian sellers have had to cut offers to secure contracts.
The latest offers for Chinese Q195 HRC have been heard at $510-512/mt CFR Karachi, while some deals were reported at $512-513/mt CFR as the lowest in early July. “The market is really bad. If someone needs to purchase, small volumes at this price level are possible,” a local source said, adding that some Chinese exporters can offer higher levels - $525-530/mt CFR for SS400 3mm and up to $540/mt CFR for 2mm. But the higher-level offers are ignored by most customers.
As for ex-China SAE1006 HRC, the latest price level has been at $530/mt CFR or slightly below, little changed from deals concluded at this destination at $530-534/mt CFR in early July.
Moreover, Japanese suppliers have cut offers for SAE1006 HRC to $540/mt CFR, which has been confirmed by major buyers in Pakistan, down $10/mt from the level reported on July 7. In addition, small volume sales from Japan to Pakistan were concluded at $530/mt CFR late last week or early this week, which has been considered the market bottom. “Some small volumes from Japan can be traded at this low, but I don't see sellers being aggressive; they just need to sell at least some volumes in the export market, and prices in Vietnam are even lower,” an international trader commented.
