As expected, with bearish sentiments in the global steel market, especially in China mounting lately, Pakistani hot rolled coil (HRC) buyers have been seeking lower prices in negotiations with foreign suppliers. Thus, several deals at lower levels have been reported for mainly ex-China SS400 coils, while in the SAE1006 HRC segment most customers have remained cautious, expecting for further discounts.
Specifically, SteelOrbis has learned of fresh bookings for Chinese SS400 HRC at $555-560/mt CFR this week, down by $10-15/mt over the past two weeks. Meanwhile, most offers for ex-China SAE1006 HRC have been voiced at $575-585/mt CFR, compared to $585-620/mt CFR two weeks ago.
In the meantime, according to market insiders, a deal for 10,000 mt of ex-Taiwan SAE1006 HRC was reportedly signed at $625/mt CFR Karachi around 10-14 days ago, while this week ex-Taiwan offers have been heard at around $610-615/mt CFR. Offers from Japan have been voiced at $610-620/mt CFR, down by $10-20/mt over the past two weeks. “No fresh deal heard in the market so far, as buyers are looking for $570-580/mt CFR for SAE1006 coils,” a Pakistani trader told SteelOrbis.