Pakistan’s imported HRC market has witnessed a hike offers following a global uptrend. Offers from China have moved by around $10/t w-o-w, SteelMint learned from its trade channels. Falling inventories have pushed up domestic HRC prices in China, resulting in higher HRC export offers.
Currently, Chinese HRC (SS400) offers are heard to be around $545-550/t CFR Pakistan. In the previous week, the offers stood at $535/t CFR basis. Meanwhile, HRC (SAE1006) offers from China are hovering around $555/t CFR basis.
“Sentiments continue to remain bullish these days on active buying” shared a Pakistan based HRC trader.
50,000 t HRC booked from Japan-A Japanese mill was reported having booked around 50,000 t HRC (SAE1006) with Pakistan based re-rollers for Jan ’21 shipments. The deal was concluded last week at a price range of $555-560/t CFR basis, SteelMint learned from sources.
Also a few days back, South Korea based steel mill booked around 10,000 t HRC to Pakistan at $545-555/t CFR basis for Jan shipments.
Bulk HRC imports to Pakistan fell in Oct’20-Pakistan annually imports around 2 mn t HRC from major exporting nations. As per data maintained with SteelMint, HRC import shipments in Oct ’20 stood at 33,679 t down by 52% against 70,451 t in the previous month.
Major steel companies reported positive results in Q3 CY ’20
- Aisha Steel, having the annual CRC and galvanized production capacity of 0.7 mn t pa has reported an operating profit of PKR 1,340 million in Q3 CY ’20, increasing by a massive 180% compared to PKR 478 million in the CPLY.
- International steel’s having an installed capacity of 1 mn t p.a and mainly deals with CRC, galvanized, and colour coated steel has reported an increase of 36% y-o-y in its net sales in Q3 CY ’20 which stood at PKR 15.67 bn. The company’s PAT (Profit after Tax) surged by 61% on the year to PKR 559 mn in Q3.
Outlook- Imported HRC offers to Pakistan is expected to remain strong on higher Chinese offers and bullish sentiments hovering in the nation’s domestic market.
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