Ship-breaking import prices in India rose by $10/LDT and $5/LDT in Bangladesh. On the other hand, prices in Pakistan were stable, w-o-w.
The ship recycling market continued its strong performance throughout last week as subcontinent buyers, particularly those from Pakistan and India, are offering attractive prices to secure tonnage.
Pakistan leads subcontinent market
Offers from recyclers in Pakistan are going strong at present. In fact, these are topping the price charts in the subcontinent since shortage of stock in the yards is driving buyers to secure tonnage.
The Pakistan currency, PKR, made a sharp recovery against the US dollar (USD) last week and is currently trading at 182.85 against the dollar.
Deals
Total tonnage at Gadani Port last week amounted to 42,388 LDT, up by 42% w-o-w.
Indian market maintains strong momentum
The recyclers in India are eager to buy more tonnage as domestic demand remains strong and inventory levels at the yards are depleting. Offers increased by about $10/LDT last week and are strongly competing with those from neighbouring Pakistan to secure more vessels.
Deals
Total tonnage at Alang Port last week amounted to 95,818 LDT, up by 111% w-o-w.
No major movement in Bangladesh market
Offers from recyclers in Bangladesh increased by $5/LDT but demand remained mostly flat with no major movement seen since the past two weeks.
There have been very limited inquiries from buyers as the mills have decreased their orders due to the slow moving domestic market.
Major steel mills have decreased their rebar offers by $20/tonne to encourage buyers amid slow construction activities.
Deals
Total tonnage reported last week at Chattogram Port was 68,972 LDT, down by 24% w-o-w.
Prices in $/LDT
Source: SteelMint Research
Outlook
Overall, as the second quarter of the year gets well underway, there is more positivity and optimism, going forward, primarily due to strong showings on commodity prices and a decent demand for tonnage across sub-continent locations.
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