Although import hot rolled coil (HRC) prices have increased recently and a more optimistic mood persists among all main suppliers, trade activity in Pakistan has remained limited considering the problems with opening letters of credit (LCs) in the country.
Accordingly, most offers for ex-China SAE1006 HRC have been reported at around $620/mt CFR this week, though by the end of the week market insiders have reported several offers from Chinese mills at as high as $650/mt CFR. At the same time, talk about a deal for ex-China materials signed at the beginning of the week at $615/mt CFR has been circulating in the market, though this information has not been confirmed by the time of publication.
Meanwhile, according to Pakistani buyers, Japanese origin SAE1006 HRC has been offered through an international trader at $650/mt CFR Karachi, up by $20/mt over the past week, though this offer has been rejected by buyers so far. Suppliers from Taiwan and South Korea have been staying out of the Pakistani market and are expected to return with new offers at higher levels next week.
“We don’t hear any new bookings for HRC as LCs are not being allowed to open, and the economy is in a bad state in Pakistan now,” a Pakistani trader told SteelOrbis.
