South Asia: Imported ship breaking offers up to $15/LDT, w-o-w

Ship-breaking import prices in Bangladesh, India and Pakistan saw an uptick of $10-15/light displacement tonnage (LTD) w-o-w.

The subcontinental recycling market continued to see rise in prices as demand outstripped supply amidst limited vessel availability. Furthermore, steel plate prices also improved (especially in India) which provided support to ship breaking prices.

However, after a slower start to the year, vessel prices were seen to be bouncing back in both Pakistan and Bangladesh.

Active deals from India

Buying interest from Indian recyclers picked up on improved domestic steel market condition and good demand from user industries like construction and automobiles. A few specialised units were secured at slightly higher levels in the recent weeks.

The Indian Rupee (INR) is currently trading at INR 74 against the US dollar.

Deals

Last week, total tonnage at Alang Port amounted to 31,134 LDT, down by 19% w-o-w.

Prices in Bangladesh rally

Domestic steel prices improved significantly last week, giving push to ship breaking prices. Due to increased local prices, Bangladesh continued to retain the top spot in the price board of the subcontinental market.

Deals

Total tonnage reported last week at Chattogram Port was 39,669 LDT, down by 63% w-o-w.

Pakistan market recovers

Pakistan, too, ended up booking some good deals despite Bangladesh being in the competition. However, offer prices from recyclers were firm due to stable demand.

Deals

Total tonnage at Gadani Port last week was reported at 22,181 LDT, down by 66% w-o-w.

What may happen?

Amidst the ongoing Chinese New Year holidays, trading activities in the ship recycling market are highly likely to remain quiet amidst tight supply.

Prices in $/LDT
Source- SteelMint Research