Ship-breaking import prices rose by up to $25/LDT, in India, Bangladesh and Pakistan respectively.
All the major recycling destinations are currently facing massive currency devaluation, yet the offer prices saw a hike due to a paucity of tonnage in the recycling market.
Scrap out of stock at Indian yards
Steel prices in India were on a downtrend due to multiple factors like seasonal decline in demand, and reduced exports due to the levy of duty. Despite this, many yards ran out of stock and very few were interested in securing tonnage in such volatile conditions.
The Indian Rupee (INR) is currently trading at INR 80 against the dollar.
Tonnage at Alang Port last week was nil.
Bangladesh looks for mid-sized tonnage
Few Chattogram recyclers showed interest in securing small to medium-sized tonnage. Any L/C valued over $5 million would need to be approved by the Central State Bank, thus, lowering the confidence of end buyers to finalise any deal.
Overall, many yards remained empty, and demand for ships increased again.
Deals
Total tonnage at Chattogram Port last week was 46,066 LDT, up by 2% w-o-w.
Pakistan currency hits all-time low
The recycling market of Gadani was reeling under pressure as the currency continued to lose ground against the US dollar amid political uncertainty and rising inflation in the country.
The PKR is currently trading at 225.9 against the US dollar, hitting an all-time low.
Deals
Total tonnage at Gadani Port last week was 470 LDT.
Prices in $/LDT
Source: SteelMint Research
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