Although trade activity in HRC import segment in Pakistan has remained rather moderate over the past two weeks following fluctuations in ex-China HRC prices, market insiders have reported that negotiations between Pakistani HRC customers and Japanese suppliers have ultimately resulted in several transactions at lower levels.
More specifically, a deal for around 20,000 mt of ex-Japan HRC has been signed at $500/mt CFR Pakistan, down by $10-20/mt over the past two weeks. Besides, according to sources, another Pakistani producer has also been negotiating to close a deal with Japan at $500-505/mt CFR levels, while the initial offer was estimated at around $510/mt CFR, down by $10/mt over the past two weeks. “We heard there was another deal for ex-Japan HRC at $500-505/mt CFR, but it is not officially confirmed so far,” a market insider said.
Meanwhile, offers for ex-China Q235/SS400 HRC have been voiced at $482/mt CFR, against $483-485/mt CFR two weeks ago. Besides, offers for ex-China Q195 HRC for late February-early March shipment have settled at $480/mt CFR, mainly the same as two weeks ago. “Offers from Chinese suppliers have been showing slight ups and downs during the past weeks, nothing important, but customers have been cautious,” a Pakistani trader told SteelOrbis.
As of February 27, HRC futures at Shanghai Futures Exchange are standing at RMB 3,421/mt ($477/mt), decreasing by RMB 47/mt ($6.6/mt) or 1.4 percent since February 20, while up 0.35 percent compared to the previous trading day, February 26.
$1 = RMB 7.174