South Asia: Imported ship breaking offers rise further on active demand

Ship-breaking import prices in Bangladesh, India and Pakistan saw an uptick by $5-10/light displacement tonnage (LDT), w-o-w.

The recycling market showed further signs of improvement last week. India competed well against its counterparts, snatching several units. Meanwhile, the other two markets, Pakistan and Bangladesh, largely remained silent with very few large LDT units booked.

India continues to secure units

After booking several deals in the previous week, Alang recyclers managed to further secure two more units last week. The Indian Rupee (INR) is currently trading at INR 74 against the US dollar. Domestic steel demand is also witnessing an upward trend amidst prevalent positive sentiments.

Deals

• Total tonnage at Alang Port last week amounted to 38,247 LDT, up by 17% w-o-w.

Lacklustre trade from Bangladesh

Bangladeshi recyclers lost several vessels to the competing market (India) last week.

The price levels are expected to remain firm as there are very few units available in the market.

Deals

• Total tonnage reported last week at Chattogram Port was 106,967 LDT, down by 11% w-o-w.

Pakistan remains slow

While India captured special units, Pakistan managed to secure a couple of vessels during the start of this year. However, the offer prices from recyclers remained firm due to lack of supply.

Deals

• Total tonnage at Gadani Port last week was reported at 66,187 LDT, down by 5% w-o-w.

Outlook

Overall, the sentiments are likely to remain positive as demand is certainly good across  the markets.

Prices in $/LDT
Source- SteelMint Research