Pakistani CRC and HDG producers raise prices despite falling import quotes

Despite the prevailing bearish sentiments in the global steel and raw materials markets, on June 13 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 205.3. Nevertheless, even taking into account the increase in CRC and HDG prices by PKR 7,000/mt (around $34/mt), the dollar-based quotations have gained only $8-11/mt compared to the previous levels.

Meanwhile, foreign HRC suppliers have continued to revise their offers downwards in order to obtain orders. Accordingly, a deal for around 40,000 mt of ex-Japan SAE1006 HRC has been reported at $820-830/mt CFR, down by $10/mt week on week. Besides, another deal for 30,000 mt of ex-Taiwan SAE1006 HRC has been signed at $810-820/mt CFR, down by $10-20/mt over the past two weeks. Suppliers from South Korea have decreased their offers for SAE1006 HRC to $800/mt CFR, down by $20/mt over the past week, though no deals have been heard so far but negotiations are underway.

At the same time, ex-China offers for SAE1006 have settled at around $785/mt CFR, down by $5-10/mt over the past week, while most ex-China SS400 HRC offers in positions from traders have been heard at $770-775/mt CFR. However, despite the most attractive offers, no deals for Chinese materials have been reported as “allocations from China are tight considering that most Chinese traders and mills are not offering to Pakistan because of strict conditions regarding the opening of LCs, in particular a 100 percent cash margin is required to open LCs,” a market insider said.

All prices on Pakistani rupee basis include 17 VAT.

$1 = PKR 205.3