Following new hikes in HRC futures prices in China, which have improved sentiments among market players, offers for ex-China HRC to Pakistan have increased slightly over the past two weeks. However, trade activity has remained weak given the extremely slow demand in the county coupled with uncertainly over the future price trend.
More specifically, offers for ex-China SS400 HRC have been estimated this week at $495-500/mt CFR mainly for February and March shipments, up by $5-10/mt over the past two weeks. Besides, offers for ex-China Q195 HRC have settled at $495/mt CFR, versus $480/mt CFR reported two weeks ago. Meanwhile, offers for ex-China SAE1006 HRC have been voiced at $510/mt CFR, following deals at around $495-505/mt CFR last week.
The increase has been caused by the recovery of HRC futures prices in China, which by January 17 have increased by RMB 171/mt ($23/mt) since January 10 to RMB 3,483mt ($484/mt), and are up 1.52 percent compared to the previous trading day, January 16.
Meanwhile, indicative offers for ex-Japan SAE1006 HRC have been estimated at 520-525/mt CFR, against $540/mt CFR two weeks ago. Meanwhile, according to sources, no deals have been reported so far, as customers’ bids have been voiced at around $510/mt CFR level. “On the one hand, customers keep pushing for lower prices, while, on the other hand, Chinese prices are moving up on the back of futures price increases,” a market insider told SteelOrbis.
