Pakistani CRC and HDG mills hike prices again amid costlier feedstock

Pakistani producers of cold rolled (CRC) and hot dip galvanized (HDG) coils have revised their offer prices upwards for the third time in March. The main reason is the continuous increase in import hot rolled coil (HRC) offers. However, despite the increase, the dollar-based quotations have decreased due to the negative impact from the continued depreciation of the Pakistani rupee against the US dollar.

Specifically, on March 22, local prices of CR and HDG coils have increased by PKR 2,000/mt (around $11/mt) compared to the previous offers voiced on March 10. However, due to the devaluation of the Pakistani rupee, the dollar-based quotations have dropped by $15-17/mt, depending on the product. In particular, this week the Pakistani rupee has plunged to a record low of around PKR 181.7 against the US dollar.

Meanwhile, the major suppliers of hot rolled coil (HRC) have been testing the Pakistani market with higher offers, for shipment of material in May and June. In particular, Chinese traders, who last week managed to drop their prices in deals to Pakistan, this week have decided to increase their offers for SS400 HRC to $900-910/mt CFR, up by $30/mt week on week, while offers for SAE1006 HRC have been voiced at $960-970/mt CFR, compared to $910/mt CFR last week. “Several deals have been signed by Pakistani pipe makers at around $905/mt CFR, but re-rollers are still negotiating,” a Pakistan-based trader told SteelOrbis. Furthermore, a deal for 20,000 mt of ex-Japan SAE1006 HRC has been heard at $1,000/mt CFR Qasim, up by $20/mt over the past week. The latest offers for ex-Taiwan SAE1006 HRC have been voiced at $1,030/mt CFR, the same as last week.

All prices on Pakistani rupee basis include 17 percent VAT.

$1= PKR 181.7