South Asia: Imported ship-breaking market prices remain stable except Bangladesh

South Asia's imported ship-breaking market remained "gloomy" in terms of prices, demand, and sentiments. Nevertheless, some deals have been concluded for Bangladesh, last week. This happened despite the complexity in opening Letters of Credit (L/Cs), as per GMS report.

On account of religious celebrations that are being observed currently, business has taken a backseat albeit temporarily. The ongoing holy month of Ramadan also resulted in "weaker sentiments" across the subcontinent.

Indian market silent w-o-w

In India, prices remained steady w-o-w with overall supply of vessels declining. In fact, recycling prices kept falling. Initially, at the beginning of the year, an upsurge of tonnage was observed which has now diminished drastically putting the country behind Bangladesh.

Last week, Augusta II (9,920 LDT), an oil tanker had arrived to Alang and Leonard (7,852 LDT), a container was beached.

On the domestic front, the INR stood at 82.03 against the dollar during the first half of trading session on 18 April, largely stable compared to INR 82.06, last week.

Total tonnage at Alang port last week was 27,418 LDT.

Bangladesh concludes few deals

Last week, Bangladesh, concluded some deals with several large LDT units arriving at the waterfront. However, the Bangladeshi ship recycling industry experienced a challenging week for deliveries and L/C approvals.

Deals concluded: General Cargo vessel Atlantic Ray (2,461 LDT), LPG Apollo
Pacific (2,188 LDT) and Bulker Ocean Great (6,311 LDT).

The Bangladeshi Taka slightly depreciated to BDT 107.08 at the time of reporting as compared to BDT 106.34, last week.

Total tonnage reported last week at Chattogram Port was 171,542 LDT.

Pakistan continues silence

Pakistan remained completely "out of the market" in terms of trade activities with local buyers offering cheap prices. Moreover, the L/C issue continued to persist in the country, making it difficult for traders to sustain in the market.

The market will rebound only if "financial difficulties" can be resolved and some stability is restored to the nation's currency and local fundamentals.

The Pakistani currency slightly appreciated to PKR 283.65 during morning trade today compared to PKR 288.69, last week.

Total tonnage reported at Gadani port last week was 1,657 LDT.

Prices in $/LDT
Source: SteelMint Research