Low demand for steel from end-user industries is having a negative impact on South Asia’s ship recycling markets, making buyers cautious and turning market sentiments gloomy. However, compared to the previous week, recycling offers in all the three countries were steady, with Pakistan reporting a sale.
Pakistan sales
Given that many yards are currently vacant, end users from Gadani are searching for small- to medium-sized vessels, and domestic demand is expected to rise during winter, the most favourable time for construction activities.
The market has remained quiet last week as well, with a few mills either stopping operations or reducing production due to a lack of demand for finished steel products as a result of widespread flooding and excessive rainfall.
Deals
Total tonnage at Gadani Port last week was Nil.
India mostly stable
End-buyers were seen participating in competitive bidding to get tonnage due to the scarcity of units in the recycling market. However, Alang recyclers didn’t lower their offers w-o-w. It is anticipated that recyclers will increase their offers in order to compete with Bangladesh, which is also seeking for tonnage to fill its emptying slots.
Deals
Total tonnage at Alang Port last week was 22,333 LDT.
Offer prices remain stable in Bangladesh
Bangladeshi buyers have become more eager to secure tonnage as recent months have seen few vessels arriving at Chattogram.
Since the Central Bank has recently tightened restrictions, very few local recyclers are able to get permissions to open L/Cs on large LDT vessels, which has a significant impact on the domestic ship recycling industry.
Deals
Total tonnage reported last week at Chattogram Port was 50,333 LDT.
Prices in $/LDT
Source: SteelMint Research.jpg)
Leave a Reply