With bearish sentiments in the Chinese HRC futures market keep mounting this week, Pakistani hot rolled coil (HRC) buyers have continued to seek lower prices in negotiations with foreign suppliers.
Specifically, following offers for ex-Japan SAE1006 HRC at $530-540/mt CFR last week, this week SteelOrbis has learned of a fresh booking for 30,000 mt of Japanese SAE 1006 HRC booked from a Japanese mill at $524/mt CFR for January shipment. Besides, another Japanese mill has sold 30,000 mt in total to two other Pakistani customers at $530/mt CFR through traders, according to sources.
Meanwhile, offers for ex-China Q235 HRC in Pakistan have been voiced at $508-510/mt CFR, while offers for Q195 HRC have been heard at $503-505/mt CFR, down by $7/mt over the past week. Besides, offers for ex-China SAE1006 HRC have been estimated at $520-525/mt CFR, down by $5/mt on the higher end of the range week on week.
“We heard only occasional deals for Chinese coils have been signed as Japanese HRC prices are competitive, standing in line with Chinese prices,” a market insider told SteelOrbis, adding, “Even though HRC futures prices in China do not show any sharp drops, the current situation in the market still affects the mood globally, with Pakistani customers pushing for more discounts.”
As of November 26, HRC futures at Shanghai Futures Exchange are standing at RMB 3,471/mt ($483/mt), decreasing by RMB 24/mt ($3.3/mt) since November 19, while down 0.12 percent compared to the previous trading day, November 25.