Ship recyclers from all major recycling locations are keeping their offers consistent despite the continuous volatility in steel prices because there is not any tonnage available in the market. However, because of the rising prices and economic slowdown, which have reduced purchasing power and risk tolerance, end-users are more likely to purchase smaller tonnages.
LC restrictions in Bangladesh
End-buyers have found it difficult to secure vessels for recycling due to the ongoing liquidity issues and LC restrictions. Domestic steel demand remains subdued as a result of cash flow issues and limited consumption across the supply chain.
Frequent power outages have forced major mills to reduce production and operate at lower capacities, while mini-mills have temporarily ceased operations.
Deals
Total tonnage reported last week at Chattogram Port was 113,312 LDT.
India stable amid festivities
Due to the disparity in rates being offered by the recyclers of nearby destinations, namely Bangladesh and Pakistan, there are not many vessels available for the recyclers in Alang. Last week’s market activity was subdued due to the holiday season.
Deals
Total tonnage at Alang Port last week was 9,393 LDT.
Pakistan struggling
The lack of demand owing to currency devaluation and the subsequent reduction in local steel prices kept the recycling market in Gadani quiet last week. Next, challenges with issuing Letters of Credit continue to be a key issue.
Many steel mills have temporarily ceased operations as a result of the weak finished steel demand that has kept market activity at a low level.
Deals
Total tonnage at Gadani Port last week was 10,966 LDT.
Prices in $/LDT
Source: SteelMint Research
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