Negotiations between Pakistani customers of hot rolled coils (HRC) and Chinese traders have ultimately resulted in several transactions at lower levels. Meanwhile, other suppliers have dropped their offers as well, though no deals have been reported so far as customers expect more discounts and are still experiencing problems opening letters of credit (LCs).
More specifically, around 2,500-3,000 mt in total of ex-China SS400, Q195 HRC have been booked by Pakistani customers through Chinese traders at $625/mt CFR for May shipment, which means deal prices have lost around $25/mt over the past week. Meanwhile, new offers for ex-China have been voiced at $628-630/mt CFR, compared to $640-645/mt CFR last week. At the same time, offers for ex-China SAE1006 HRC from big mills have dropped by $10-20/mt week on week to $650-660/mt CFR, while the same materials from traders have been offered at $645/mt CFR.
In the meantime, this week, suppliers from Taiwan and Japan have decided to go lower as well. In particular, offers for ex-Taiwan SAE1006 HRC have settled at $680-690/mt CFR, down by $10-20/mt week on week, while ex-Japan offers have been reported at $690-700/mt CFR, versus $715/mt CFR last week. “Although HRC prices have been decreasing, trade activity remains rather limited as customers expect more drops in the coming weeks. Besides, opening LCs is still an issue,” a Pakistani trader told SteelOrbis.
Meanwhile, Pakistani producers of CRC and HDG have maintained their domestic prices unchanged since the increase announced back in February. “Import HRC prices have been falling, but Pakistani mills have sustained their CRC and HDG offers given the continuous devaluation of the national currency. We expect some revision this month, but doubt it will be significant,” a market insider said.
