After significant rises were seen in HRC import prices in Pakistan during previous weeks after prices rises globally, this week has brought negative sentiment following the futures and domestic price decreases in China. As a result, several deals for cheaper ex-China materials have been reported this week, though business activity has remained limited, affected by letter of credit (LCs) issues.
Accordingly, after a few deals for around 1,000 mt each of ex-China SS400 HRC were signed at $660-665/mt CFR Karachi at the beginning of this week, down by $15-20/mt over the past two weeks, while the material has changed hands at $650/mt CFR by the end of the week. “We are hearing numerous deals for ex-China HRC at extremely low levels all over the world, including Pakistan, this week, as some Chinese suppliers are practicing non-VAT trade, avoiding tax payment in China,” a market insider told SteelOrbis. Offers for ex-China SS400 HRC have been mainly voiced at $660-680/mt CFR, compared to $680-700/mt CFR last week.
Furthermore, a deal for ex-China SAE1006 HRC has been reported in Pakistan at $680/mt CFR this week, versus offers at $720/mt CFR and above last week. However, most offers for ex-China SAE 1006 HRC have settled at $685-700/mt CFR.
Meanwhile, according to Pakistani buyers, other foreign suppliers, like those from Japan, South Korea and Taiwan have mainly been staying out of the market, with the indicative offers at above $720/mt CFR.