Imported ship-breaking prices remained unchanged for the week with India reporting a sale.
India market sees sale despite low tonnage
With the Indian government’s announcement of removal of steel and iron ore export duties, India had a largely volatile and rollercoaster week. Prices showed a sharp rise in the immediate aftermath of the duty removal but fell soon after.
Local steel plate prices also fell last week, and the Indian rupee (INR) is still trading at a high of 81 to the dollar. So this market is not seeing a lot of tonnage, but still managed to report a sale.
Deals
Total tonnage at Alang Port last week was 68,681 LDT.
Bangladesh continues to have LC issues
Due to the continued L/C limitations enforced by the Central Bank, domestic recyclers are unable offer any new units, and end-buyers are mostly quiet. Bangladesh remained mainly inactive.
Despite this, there is little point in discussing new purchases with end-buyers until the economic and LC situation in Bangladesh stabilises because majority of them are doing less business and the few who can open L/Cs are significantly under-performing.
Deals
Total tonnage reported last week at Chattogram Port was 35,689 LDT.
Pakistan side-lined
Pakistan has mostly stayed out of action for the past week, as local steel prices in India first soared and then fell. Buyers there are even keeping an eye on a subdued Bangladesh that is unable to purchase any new vessels.
An increasingly hungry group of end-buyers has a limited number of potential units to choose from, but since they aim to place bids much below market realities, they are unlikely to secure vessels any time soon.
Total tonnage at Gadani Port last week was nil.
Prices in $/LDT
Source: SteelMint Research
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