Ship scrap import prices rise in India, Pakistan while Bangladeshi buyers retreat

Ship-breaking import prices in India and Pakistan rose by $15-$35/light displacement tonnage (LDT). On the other hand, prices in Bangladesh dropped by $10/LDT.

Rising fuel rates and high volatility in prices were the key factors influencing buying decision. Looking at the current price levels, recyclers are doubtful whether these will sustain, but a dearth of vessels in the recycling markets is encouraging buyers to bid aggressively for available tonnage.

Indian market continues to remain strong

Steel prices in the domestic market are trading at a very high level. However, market participants anticipate a decline in steel demand in the short-term as rising steel and fuel prices may defer buying activities.

The Indian Rupee also remains stable and is currently trading at INR 75 against the US dollar.

Deals

Total tonnage at Alang Port last week amounted to 57,110 LDT, down by 44% w-o-w.

Pakistan market sees tonnage shortfall

Pakistani buyers are bidding aggressively as there is limited tonnage available at the recycling yards. However, overall market sentiments remain dull due to the ongoing political instability in the country, Ramadan holidays and currency volatility.

Deals

Total tonnage at Gadani Port last week amounted to 4,409 LDT, w-o-w.

Bangladesh market takes a breather

After leading the recycling market for quite some time, the buyers in Bangladesh have retreated as domestic prices softened. Trading activities in the domestic market are likely to remain slow during the holy month of Ramadan.

Deals

Total tonnage reported last week at Chittagong Port was 58,259 LDT, down by 42% w-o-w.

Prices in $/LDT
Source- SteelMint Research