South Asia: Ship-breaking import prices fall further on weak market sentiments

Offers from recyclers of all recycling destinations saw a hit from the past four weeks due to their depreciating currencies, and falling steel demand. Amid such market sentiment, ship breaking import prices fell by $10-20/LDT in India, Bangladesh and Pakistan.

India steel prices under pressure

The bids from end buyers continue to remain low. A downtrend in the domestic steel prices was witnessed last week as the government surprised the steel industry with export duty on almost all the major steel products.

The imposition is leading to further correction in steel prices. Industry associations have requested the government to waive off export duty on existing contracts.

Deals

Total tonnage at Alang Port last week amounted to 74,685 LDT, down by 40% w-o-w.

Rise in enquiries in Bangladesh

The end buyers of Chittagong started enquiring for more tonnage. The inquiries which were reported were more for small to mid-sized tonnage.

Due to depreciating Bangladeshi Taka, the imported scrap market has not yet picked up. Buyers continue to book small quantities in order to meet their present requirements while closely monitoring the market for a clearer picture.

Deals

Total tonnage to be reported last week at Chittagong Port was 67,467 LDT, up by 27% w-o-w.

Pakistan market remains muted

The recycling market of Gadani remains muted amidst the economic instability in the country. Steel market participants halted new purchases of containerised ferrous scrap amidst the depreciating Pakistani currency.

Deals

Total tonnage at Gadani Port last week amounted to 49,975 LDT, up by 10% w-o-w.

Prices in $/LDT
Source: SteelMint Research

Outlook

Overall, there is a scarcity of units in the recycling market. The market waits to see what levels the end buyers will compete in the coming month for securing tonnage.