India, Bangladesh and Pakistan — the major recycling destinations — witnessed a drop in prices last week from recyclers due to the continual decline in international scrap prices.
Ship-breaking import prices dropped by up to $10/LDT in India, and Pakistan while prices in the Bangladesh market dropped by $5/LDT.
The prevailing offers are at nearly six-month lows as such levels were last seen in January 2022 across all three major ship-breaking destinations.
India remains silent
Having been the top-placed sub-continent market for several months early in the year, India has witnessed a few unstable weeks of late.
With the ongoing monsoon, it is more of a silent week in Alang. Landed costs of imported ferrous scrap are becoming more cost-competitive now compared to the domestic material. However, mills are still prefer domestic prompt cargoes to avoid the risk of the depreciating Indian rupee.
The Indian rupee is currently trading at 79.04 to the dollar.
Deals
Total tonnage at Alang Port last week amounted to 2,300 LDT, down by 91% w-o-w.
Bangladesh sees no sales, delivery
The Bangladesh Ship Breakers Association has decided to halt selling and delivering scrap until further notice. The prices are expected to firm up when the markets reopen after the upcoming Eid holidays.
Slow construction activities and heavy rainfall in many parts of Bangladesh have led to a decrease in end-user buying interest. Mills have been offering attractive discounts to boost sales.
Deals
Total tonnage reported last week at Chattogram Port was 71,971 LDT, up by 15% w-o-w.
Pakistan losing sales
Having lost most of the recent sales to the stronger Bangladeshi and Indian markets, it seems to be difficult for Gadani recyclers to secure tonnage.
Local recyclers are also claiming that the State Bank of Pakistan is not approving any L/C above $100,000, such is the risk state of financial affairs in the country at present.
Deals
Total tonnage at Gadani Port last week was Nil.
Prices in $/LDT
Source: SteelMint Research
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