South Asia: Imported shipbreaking prices stable amid absence of deals

Due to the continuous devaluation of currencies in the major recycling destinations, the offer prices from recyclers remain stable.

Shipbreaking import prices in India, Bangladesh and Pakistan remained unchanged w-o-w.

India market stable

There is a desire to secure tonnage, but the end buyers are not willing to go much higher with offer prices due to volatile prices in the domestic market.

The Indian Rupee (INR) is currently trading at Rs. 79.5 against the USD.

Deals

Total tonnage at Alang Port last week was 1,292 LDT, down 85% w-o-w.

Bangladesh market quiet

The domestic ship recycling industry came to learn that the Central State Bank has adjusted the opening of L/Cs on incoming vessels downwards from $5 million to $3 million.

Increasing production costs and lower margins from finished steel sales kept the market sluggish last week. Furthermore, the Muharram holidays may keep the domestic market activities quiet this week as well.

Deals

Total tonnage reported last week at Chattogram Port was 69,222 LDT, up 5% w-o-w.

Pakistan out of units

The offer prices from recyclers at Gadani remain unchanged due to limited availability of scrap in the domestic market. As many recycling yards have already run out of inventory, the end buyers are willing to bid competitively and match the levels offered by their counterparts to secure tonnage, but unfortunately there are no units available.

Due to heavy rains across many parts of the country, the market for finished steel has been slow.

Total tonnage at Gadani Port last week was nil.

Prices in $/LDT
Source: SteelMint Research