By the end of February, import HRC activity in Pakistan has remained under pressure from ongoing issues with the opening of letters of credit (LCs). However, import HRC prices have continued to increase, with only occasional deals reported in the market at higher levels.
More specifically, market insiders have reported a deal for 20,000 mt of ex-Japan SAE1006 HRC signed by a Pakistani buyer at $720/mt CFR this week, following weeks of silence. Meanwhile, suppliers from China have increased their offers for SAE1006 to $685/mt CFR, up by $20/mt week on week, while offers for SS400 HRC have been voiced at as high as $670/mt CFR, up by $20/mt week on week, and versus $635-640/mt CFR two weeks ago. “Pakistani pipe makers’ price idea is still at around $650/mt CFR for ex-China materials, though the problem is more LCs than prices,” a Pakistani trader said.
Meanwhile, no offers for SAE1006 HRC from Taiwan and South Korea have been heard in Pakistan this week as “sellers are not interested in offering given the impossibility of opening LCs,” according to sources.
