The ongoing downtrend in the global hot rolled (HRC) market has continued to force foreign suppliers to decrease their offers to Pakistan as well. However, even with the announcement of lower prices, most Pakistani buyers have been cautious as regards signing new deals, being quite confident of a further decrease. Thus, trading activity has been muted this week, with the focus only on negotiations with Chinese traders who have kept offering position cargoes at the lowest level among all foreign suppliers.
Accordingly, a position cargo for 5,000 mt of ex-China SS400 HRC has been sold at $770/mt CFR Pakistan, down by $20/mt over the past week. Another Chinese cargo for SAE1006 HRC has been booked at $780/mt CFR, down by $35/mt week on week. “We believe new deals for ex-China SS400 HRC will be signed at lower levels next week as Pakistani buyers are negotiating with Chinese traders at $765/mt CFR and lower levels,” a market insider said.
In the meantime, suppliers from Taiwan have decreased their offers for SAE1006 HRC to $830-840/mt CFR, down by $30-40/mt over the past week, while the most recent offers from Japan have been heard at $840-850/mt CFR. However, no deals have been heard so far, “as most Pakistani buyers are looking for $800-810/mt CFR,” a Pakistan-based trader told SteelOrbis. Meanwhile, South Korean HRC suppliers have not come with new offers to Pakistan this week as, according to the sources, they sold out their material to the EU market.
