Following significant drops seen in HRC import prices in Pakistan during previous weeks against the backdrop of price declines globally, this week has brought some positive sentiment given the futures and domestic price increases in China. Besides, offers from other Asian suppliers have been reported at higher levels as well, though business activity has remained limited so far.
Accordingly, after ex-China SAE1006 HRC offers were reported through traders at $565/mt CFR last week, this week new offers have been voiced at around $585-590/mt CFR, while offers from big Chinese mills have already been voiced at as high as $640/mt CFR. Besides, offers for ex-China SS400 HRC have been heard at $570/mt CFR, up by $10-20/mt week on week. “The market is very confused now. Some expect a further rebound, while some still do not believe in a strong uptrend and are expecting prices to roll back in the coming weeks,” a market insider said.
Meanwhile, this week suppliers from Taiwan have been offering their SAE1006 HRC at $625/mt CFR, while offers from Japan have been voiced at $630/mt CFR, up by $10-20/mt over the past week. According to sources, no new offers have been heard from South Korea, but they are expected to increase as well by around $20/mt to about $630/mt CFR in the short run.