Following drops in HRC futures prices in China this week, which has worsened sentiments among market players, offers for ex-China HRC in Pakistan have declined slightly over the past two weeks. However, trade activity has remained weak given the extremely slow demand in the country, coupled with uncertainly over the future price trend, with most customers lowering their bids.
More specifically, offers for ex-China SS400 HRC have been estimated this week at $483-485/mt CFR mainly for March shipment, down by $5-10/mt over the past two weeks. Besides, offers for ex-China Q195 HRC have settled at $480/mt CFR, versus $485/mt CFR reported last week. According to sources, a deal for around 3,000 mt of ex-China Q195 HRC was signed at $485/mt CFR for end-of-March shipment at the end of last week. In the meantime, offers for ex-China SAE1006 HRC have been estimated at $500/mt CFR, moving sideways over the past two weeks.
Meanwhile, indicative offers for ex-Japan SAE1006 HRC have been estimated at 520/mt CFR, against $525/mt CFR two weeks ago. However, according to sources, “$520/mt CFR is too high to be accepted and we expect new deals to be signed at around $500-510/mt CFR”. Besides, offers for ex-South Korea SAE1006 HRC for April shipment have been voiced at $515/mt CFR. “They will find few takers as they are not considered regular sellers in Pakistan,” a Pakistani mill’s representative told SteelOrbis.
