Pakistan’s import HRC market has seen an upward adjustment in ex-China prices this week, following higher HRC futures prices in China and the disappearance of low-priced non-VAT offers after the introduction of new export licensing requirements in China. Other foreign suppliers, however, have so far refrained from issuing fresh offers as they assess the market conditions.
More specifically, offers for ex-China Q195 HRC have been voiced at $480-485/mt CFR for February, up by $20/mt over the past two weeks, with a few deals reported to have been signed at $480/mt CFR. At the same time, according to some sources, a number of Chinese offers for Q195 HRC have already been voiced at even higher levels of around $490/mt CFR, “but this level will not be accepted by buyers as some expect prices to roll back soon”, as one source said. Besides, offers for ex-China SAE1006 HRC have settled at around $480/mt CFR, mainly the same as two weeks ago.
In the meantime, no new offers have been voiced for SAE1006 HRC from suppliers from Japan, South Korea and Taiwan, with the last indicative offers reported at $490-500/mt CFR levels before the New Year holidays.
As of January 7, HRC futures at Shanghai Futures Exchange are standing at RMB 3,332/mt ($475/mt), increasing by RMB 50/mt ($7/mt) since December 30, while increasing by 2.52 percent compared to the previous trading day, January 6.