South Asia’s imported ship-breaking market remained steady amid winter holidays. Imported prices in India remained unchanged this week whereas the Pakistan market bottomed out. The industry participants believe that the year 2023 is likely to remain supportive for the Pakistan’s recycling market.
Meanwhile, the central bank of Bangladesh refused to issue additional L/Cs for the purchase of recycling units, and the country has been dormant for yet another week with little activity.
No deals from India
The Indian ship-breaking market followed the global cues. Prices remained stable w-o-w towards the year end. Buyers were hesitant as they were expecting a further drop in prices.
However, market fundamentals remained unsteady, and the rupee continued to struggle in the currency exchange market. The INR traded at 83 against the US dollar ($).
The total tonnage at Alang Port last week was 27,770 light displacement tonnage (LDT).
Bangladesh silent
Bangladesh remained inactive in the market since the majority of purchasers were unable to secure funding from the central bank to create new L/Cs.
Local recyclers were unable to compete in the imported market while the BDT exchange rate hovered at around 105.5 compared to USD.
The total tonnage reported last week at Chattogram Port was 40,417 LDT.
Pakistan market dull
Pakistan’s imported ship-breaking market bottomed out towards the year-end due to the turmoil in the country, both politically and economically, with the hope that 2023 will benefit the recycling industry. Despite this, the Pakistan market saw a positive price trend last week with buyers enquiring about available units.
Additionally, the national currency continued to depreciate for yet another week, almost passing PKR 225.5 in comparison to USD.
The total tonnage at Gadani Port last week was nil.
Prices in $/LDT
Source: SteelMint Research
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