Although trade activity in the HRC import segment in Pakistan has remained rather moderate over the past two weeks following fluctuations in ex-China HRC prices, market insiders have reported that negotiations between Pakistani HRC customers and Chinese suppliers have ultimately resulted in several transactions at lower levels.
More specifically, several deals for a total of around 10,000-15,000 mt of ex-China Q195 HRC have been signed at $455/mt CFR Pakistan for July shipment, down by $10-15/mt over the past two weeks, with freight estimated at around $27/mt. Meanwhile, ex-China SAE1006 HRC offers have settled at around $480/mt CFR, compared to $485/mt CFR two weeks ago, though no deals have been reported so far.
In the meantime, offers for ex-Japan SAE1006 HRC have been voiced at $500/mt CFR, the same two weeks ago. However, according to sources, workable prices for ex-Japan material have been estimated at $490-495/mt CFR for July shipment.
According to sources, market sentiments have been worsening given further fluctuations in the HRC futures market in China. Thus, most Pakistani buyers expect to sign new deals with additional discounts. In particular, as of May 29, HRC futures at Shanghai Futures Exchange are standing at RMB 3,110/mt ($432/mt), decreasing by RMB 100/mt ($/mt) or 3.1 percent since May 22, while down 0.32 percent compared to the previous trading day, May 28.