The pressure of currency depreciation in all the major ship recycling hubs is making it difficult for recyclers to offer prices that meet buyers’ expectations. The recycling market has remained quiet for over a month, which has dragged prices down to one-year low: a similar price range was last seen in July 2021, SteelMint data shows.
Shipbreaking import prices dropped by $20/LDT in India, while prices in Bangladesh and Pakistan dropped by $10/LDT.
Weak sentiments in India
Market sentiments have weakened due to the continual drop in currency, seasonal downtrend in steel demand in the domestic market due to heavy rainfall in many regions and falling steel exports due to the imposition of 15% export duty.
The Indian rupee is currently trading at 79.80 to the US dollar.
Deals
Total tonnage at Alang Port last week amounted to 16,723 LDT.
Bangladesh quiet during Eid holidays
The Eid holidays kept the market largely muted last week. Market participants opted to wait and watch for a clearer price direction.
Deals
Total tonnage reported last week at Chattogram Port was 44,992 LDT, down 4% w-o-w.
Pakistan mostly inactive
The market in Gadani remained inactive since last week due to the festive occasion of Eid. However, there has been a slight improvement in offers from suppliers for imported scrap. Thus, market participants are waiting until the market fully reopens.
Deals
Total tonnage at Gadani Port last week was nil.
Prices in $/LDT
Source: SteelMint Research
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