Sentiment were mixed across sub-continental markets last week as buyers appeared less willing to commit to new tonnage while fundamentals remained uncertain – particularly in view of the recent changes in market conditions where currencies have alternately fallen and risen.
Ship-breaking import prices in India saw a drop of $5/LDT, while prices in Pakistan witnessed an uptick of $10/LDT, and Bangladesh prices remained unchanged, w-o-w.
Bangladesh’s tough L/C restrictions
The continued restrictions on large L/C’s continue to be strict nationwide in Bangladesh. Therefore, in order to meet the required government approvals for on site L/Cs, end-buyers must have their banking institutions and credit facilities in order.
The Chattogram recyclers are looking for small-sized vessels with quick delivery to meet local steel demand before the winter construction season. A fluctuating currency kept market sentiments mainly muted.
Deals
Total tonnage reported last week at Chattogram Port was 38,700 LDT.
India mostly absent
India continues to be largely absent from the market due to its decreased tonnage supply and pricing levels that lag behind those of its competing neighbours. Domestic steel demand in India is likely to regain some momentum with the end of monsoon and the ongoing festive season.
Deals
Total tonnage at Alang Port last week was 34,060 LDT.
Signs of improvement in Pakistan
A few mills have begun placing small orders, which indicates a slight uptick in the domestic steel market. The resumption of several government-funded construction projects may occur in the upcoming months because winter is thought to be a favourable time for construction activities.
For the second week in a row, the Pakistani rupee strengthened versus the US dollar, and it is currently trading at 227.92.
Deals
Total tonnage at Gadani Port last week was 870 LDT.
Prices in $/LDT
Source: SteelMint Research.jpg)
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