Given the continuous bullishness in Chinese HRC futures prices, this week new offers for ex-China HRC have kept increasing in Pakistan. At the same time, trade activity has remained weak amid slow demand, while several occasional deals for ex-China Q195 HRC are still reported at the same level as last week through Chinese non-VAT traders. Other foreign suppliers, like those from Japan and Taiwan, have been refraining from giving new offers to Pakistani buyers so far.
More specifically, new offers for ex-China Q195 HRC have been heard in Pakistan at around $550-552/mt CFR, while offers for SS400 HRC have been estimated at $560/mt CFR for late December- January shipment, up by $10-15/mt week on week. However, according to sources, several deals for Q195 HRC have been signed at $540-545/mt CFR levels for ex-China materials from non-VAT traders, the same as last week.
Meanwhile, most offers for ex-China SAE1006 HRC have been estimated at $585-590/mt CFR mainly for January shipment, up by $10/mt week on week.
The increase has mainly been driven by better sentiment in China caused by higher HRC futures prices during the past week. Notably, as of November 8, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,940/mt ($549/mt), increasing by RMB 75/mt ($10.5/mt) or up by 1.9 percent since November 1. ($1 = RMB 7.1773)
At the same time, no new offers have been heard from Japanese and Taiwanese SAE1006 HRC suppliers. “We expect sellers from Japan and Taiwan to start negotiations in third week of November, but they are silent for now,” a Pakistani trader told SteelOrbis.
