South Asia’s ship-breaking market witnessed demand cooling off, as well as lower price levels, more closely aligned with domestic steel prices.
Prices in Bangladesh are still trading around $600/LDT, and are not far off in India either. Pakistan and even Turkiye are the only countries that are far behind and out of the running.
Indian market less active
While prices remained constant, the market showed signs of lesser transactions due to lower demand.
In the coming weeks, we might see almost no vessels arriving in Alang. There have been no local transactions, and tonnages are not currently being sought after by purchasers.
On the domestic front, the INR stood at 82.21 against the USD during the first half of the trading session on 28 March, slightly strengthening compared with INR 82.67 last week.
Total tonnage at Alang Port last week was 41,056 LDT.
Prices stable in Bangladesh
As recyclers started preparing for the lengthy Ramadan period, the market in Chattogram experienced a softening of sentiments.
A majority of recyclers anticipate that prices have reached a peak and will now begin to decline. Prices for imported ferrous scrap corrected, reflecting a similar trend.
The markets are expected to slow down as we approach Ramadan and domestic activity will slacken.
The Bangladeshi Taka slightly appreciated to BDT 106.37 at the time of reporting compared to BDT 106.95 last week.
Total tonnage reported last week at Chattogram Port was 8,271 LDT.
Pakistan’s liquidity crisis persists
With lowest prices in the subcontinent and L/C restrictions, Pakistan is still behind India and Bangladesh and has been unable to procure any vessels due to an ongoing currency crisis and liquidity crunch.
The Pakistani currency rose slightly to PKR 283.42 during morning trade today compared to PKR 281.83 last week.
Total tonnage reported at Gadani Port last week was 1,657 LDT.
Prices in $/LDT
Source: SteelMint Research
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