Pakistani producers of cold rolled (CR) and hot dip galvanized (HDG) coils have recently regained their appetite for feedstock, aiming to secure themselves from the anticipated increase in prices. Accordingly, most Pakistan-based customers expect import hot rolled coil (HRC) prices to move up further, either due to higher demand in alternative destinations, or due to higher freight rates. Moreover, it was about time for local re-rollers to replenish their stocks, with most of them operating at low inventory levels lately due to a good amount of confusion regarding price developments.
Accordingly, SteelOrbis has learned that during the past two weeks Pakistani re-rollers have booked about 50,000-55,000 mt of ex-Japan SAE1004 HRC in total at $1,080-1,085/mt CFR Karachi, for August shipment. Meanwhile, initial offers have been voiced at $1,100/mt CFR Karachi, as SteelOrbis reported previously. Local producers of steel pipes are also expected to enter the market in the next week or two, according to sources.
In the meantime, each Pakistan-based source connected with the flats market is waiting for the final determination of duties on import HRC. Accordingly, the budget proposed by Pakistan’s government for the 2021-22 period recently has included the idea of reduction or exemption of custom and regulatory duties on import of flat rolled products.