South Asia: Imported ship-breaking scrap prices rise by $5/LTD w-o-w in India

Given how things have been unstable over the last two quarters, the recycling markets are nearing towards the end of the year without any strong desire, ability, aggression, or even an evident willingness to engage and acquire tonnage.

Imported ship-breaking scrap prices rose by $5/light displacement tonnage (LTD) in India, while in Bangladesh and Pakistan, prices remained unchanged w-o-w.

Empty plots in India

The local port position has been empty for a long time, with no new vessels arriving last week and the last tonnage from previous weeks finally got delivered to Alang buyers.

However, India remains a viable subcontinent destination, despite the fact that the currency has once again depreciated to INR 81 against the US dollar, while local steel prices gained ground following last week's volatile drop.

Deals

Total tonnage at Alang Port last week was 45,100 LDT.

Bangladesh mostly absent

Bangladesh still remained out of the market since most buyers were unable to obtain central bank financing in order to open new letters of credit. There is also discussion that the country is short of US dollars.

Chattogram buyers, therefore, observed few vessels leaving for competing markets this week too.

Deals

Total tonnage reported last week at Chattogram Port was 38,122 LDT.

Weak sentiments in Pakistan

Given the severe losses incurred on ship pricing so far this year, Pakistani buyers are yet to truly recover.

Of course, the country's political and financial situation continues to be terrible, so it may not come as a surprise that Gadani buyers are quite reluctant to make any offers.

Total tonnage at Gadani Port last week was nil.

Prices in $/LDT
Source: SteelMint Research

Outlook

Due to the severe lack of funding by Bangladesh's central bank, the attention has consequently shifted to India primarily, leaving Bangladesh out of the picture. Everyone is expecting for more stability in prices and demand across the subcontinent in the coming year to fill vacant plots once again.