Believing that the downward trend of import hot rolled coil (HRC) offers has hit the bottom, Pakistani re-rollers have been quite active in negotiations with major overseas HRC suppliers recently. Subsequently, by the end of last week a leading Pakistani flats mill booked 50,000 mt of ex-Japan SAE1004 HRC at $1,045/mt CFR Karachi, for September and October shipment. It is noteworthy that the customer managed to get a $5/mt discount during the negotiations, as the initial offers were voiced at $1,050/mt CFR Karachi. Prior to this deal, about 15 days ago another Pakistan-based re-roller purchased 20,000 mt of material of the same origin at $1,060/mt CFR Karachi. One more contract for ex-Taiwan HRC is anticipated to be signed in Pakistan in the coming days at $1,047/mt CFR, for shipment in the middle of September.
However, according to an alternative view, it is not excluded that HRC prices could indicate a further decline, with levels around $1,025/mt CFR being discussed as more relevant now.