As reported previously, once new hot rolled coil (HRC) offers were voiced, Pakistani re-rollers returned to negotiations, insisting strongly on considerable discounts. Consequently, a few transactions concluded at the end of last week have been disclosed to the market.
Accordingly, while foreign HRC suppliers (from Taiwan and South Korea) have been aiming to get at least $1,000/mt CFR Karachi during the past week, two Pakistani re-rollers have managed to get a $45/mt discount on ex-Taiwan HRC. Each of the two Pakistani flat steel mills in question purchased a 15,000 mt lot of ex-Taiwan SAE1006 HRC at $955/mt CFR Karachi, for July shipment. Meanwhile, a third Pakistani re-roller is heard to be still involved in negotiations, though with the Taiwan supplier willing to reduce its price to $990/mt CFR Karachi at the lowest, also for July shipment. “These deals sound unbelievable in the current situation, with prices skyrocketing day by day. However, it seems that local demand in Taiwan is scarce so they are aiming to grab any export order. Nevertheless, I am still convinced they could have gotten better prices in the EU,” a Pakistani HRC seller stated.
At the same time, one Pakistani re-roller is heard to be in talks for ex-Japan HRC (for a cargo of about 20,000-25,000 mt), for June shipment reportedly at $1,005/mt CFR Karachi, while the initial offers were at $1,020/mt CFR Karachi, as SteelOrbis reported earlier.