Pakistani CRC and HDG mills hike prices despite falling import quotes

Despite the prevailing bearish sentiments in the global steel and raw materials markets, and in particular lower input costs, on May 19 Pakistani producers of cold rolled (CR) and hot dip galvanized (HDG) coils announced increases in offer prices for their domestic market. The suppliers have been aiming to offset the devaluation of the Pakistani rupee, which has hit a new all-time low against the US dollar at PKR 201.2. Nevertheless, even taking into account the increase in CRC and HDG prices by PKR 5,000/mt (around $25/mt), the dollar-based quotations have declined by $76-88/mt compared to the previous levels.

Meanwhile, foreign HRC suppliers have continued to revise their offers in order to obtain orders, though failing to conclude new bookings. Specifically, ex-China offers for SAE1006 have settled at around $815/mt CFR, down by $15/mt over the past week. Meanwhile, most ex-China SS400 HRC offers in position from traders have been heard at $790/mt CFR, down by $10/mt week on week. Several small deals have been signed by Pakistani pipe makers at the abovementioned level, according to sources.

At the same time, suppliers from Taiwan and South Korea have decreased their offers for SAE1006 HRC to $870/mt CFR, down by $15-20/mt over the past week. “South Korea and Taiwan have decreased their offers for Pakistan and are asking for bids, but no customer has any bid so far,” an international trader told SteelOrbis.

All prices on Pakistani rupee basis include 17 VAT.

$1 = PKR 201.2