Having seen the ongoing acceleration of the uptrend of global hot rolled coil (HRC) prices, Pakistani buyers have continued with some degree of caution to accept higher prices in new deals.
Accordingly, at the end of last week a deal for around 20,000 mt of ex-Indonesia HRC was signed at $870/mt CFR, up by $10/mt from the latest deal price last week. Meanwhile, this week offers from Indonesia have already been voiced at $890-910/mt CFR. Besides, another contract for around 10,000-15,000 mt of Japanese HRC has been reported at $900/mt CFR Karachi, while the most recent offers from Japan have been heard at $950/mt CFR. As a result, considering the difference between the last deal prices and the current offers, most HRC suppliers have disregarded the buyers’ cautious approach and have remained bullish.
In the meantime, offers for ex-China SAE1006 HRC have been heard at $900-915/mt CFR, up by $30-35/mt over the past week. Several offers from Chinese traders have been voiced at above $850/mt CFR, though no deals have been reported so far. “The position cargoes are not much in quantity and Pakistan will not pay over $850/mt CFR for them, and so traders prefer to sell in Vietnam at $820-830/mt CFR,” an international trader told SteelOrbis. The new prices for SAE1006 HRC from Taiwan and South Korea are at $950/mt CFR and 940/mt CFR, respectively, up by $40-50/mt over the past week.
“Local mills increased their prices for CRC and HDG at the end of last week, but the demand in the downstream sector is still rather weak, so buyers are cautious,” a market insider stated.