This week, new offers for import HRC have decreased in Pakistan, mainly given the uncertainty over the futures price trend in China and the continuing declines in Chinese offers to Pakistani buyers.
Specifically, offers for ex-China SAE1006 from mills have been voiced in Pakistan at $535/mt CFR for December shipment, against $550/mt CFR two weeks ago. However, according to sources, buyers have rejected the new offers, expecting more decreases in the short term.
Meanwhile, offers for ex-China SS400 HRC have been estimated at $515/mt CFR, against $530/mt CFR last week. “Customers are not ready to pay more. Some price ideas are at $510/mt CFR and below,” a Pakistani trader said. According to sources, last week several deals for ex-China Q235 HRC are reported to have been signed at $530-535/mt CFR, while a deal for Q195 HRC was signed at $515/mt CFR at the beginning of this week.
As of October 23, HRC futures at Shanghai Futures Exchange are standing at RMB 3,476/mt ($488/mt), decreasing by RMB 111/mt ($15/mt) since October 16, while down 0.32 percent compared to the previous trading day, October 22.
At the same time, other suppliers have been less active in Pakistan during past weeks, though offers for ex-Japan SAE1006 HRC have been voiced at $540/mt CFR for December shipment, versus $520-530/mt CFR two weeks ago. “While Chinese prices keep falling, suppliers from Japan are more positive with new offers heard at higher levels as compared to several weeks ago,” a market insider said.