After significant rises were seen in HRC import prices in Pakistan during the past weeks after price rises in China, this week has started with negative sentiments following futures and domestic price decreases in China. As a result, most Pakistani customers have preferred to take their time to evaluate current market developments.
Accordingly, after a deal for around 2,000-5,000 mt of ex-China SS400 HRC was signed at $615/mt CFR Karachi at the end of last week, up by $25/mt week on week, on Monday, December 19 new offers for ex-China materials have been reported at $600/mt CFR and some at even as low as $590/mt CFR, according to sources. This decrease was driven by worse sentiments in China caused by the sharp drop in futures prices, which by Monday had lost around RMB 124/mt ($18/mt) since Friday, December 16.
Furthermore, ex-China SAE1006 HRC offers which at the beginning of last week were increased by around $15-20/mt to $615-620/mt CFR, by the end of last week reached $620-635/mt CFR Karachi. This week, however, no new offers for ex-China SAE1006 HRC have been voiced so far, though market insiders expect prices to decrease at least to $600/mt CFR level.
In the meantime, the latest offers for ex-Vietnam SAE1006 HRC have been reported at $635/mt CFR Karachi. “We have not heard any deals done so far, but negotiations are underway,” a Pakistani trader told SteelOrbis. Offers for ex-Japan SAE1006 HRC have been rare in Pakistan with only some occasional offers reported at $600/mt FOB (around $660/mt CFR Karachi) for March shipment materials.
“All old offers have lost their sense. We are only watching futures prices now to understand what will happen next,” a market insider said.
