South Asia: Ship-breaking import prices stable w-o-w, Bangladesh maintains strong momentum

Ship-breaking import prices in Bangladesh, India and Pakistan were stable w-o-w.

However, Bangladesh was able to secure a deal at well over $600/LDT.

Ship recycling offers in the subcontinent have been stable this week due to the volatility in steel demand, which has caused end-buyers to hold back from increasing their bids. With very few units available for recycling, there is an appetite to secure tonnage.

Bangladesh securing deal

With strong domestic steel prices, Bangladesh is proving to be the most popular destination last week as the end buyers are bidding aggressively to secure tonnage. The prices they offer are higher than those in neighbouring markets, making them the top choice for sellers.

Deals

Total tonnage reported last week at Chattogram Port was 9,119 LDT, down by 88% w-o-w.

India buyers are cautious

The end-buyers are in a state of confusion, as the volatility in steel prices have made them rethink whether to buy at the prevailing prices or wait and see how the prices evolve. The recent hike in domestic steel demand had encouraged buyers to make aggressive offers but prices have not climbed further this week.

The Indian Rupee (INR) depreciated a bit and is currently trading at 75 against the US dollar.

Deals

Total tonnage at Alang Port last week amounted to 28,904 LDT, up by 27% w-o-w.

Pakistan competing well

The industry saw the Gadani market roaring back to rival a prolific Bangladesh, with some of the highest offers.

Bangladesh started to see some fierce competition from Pakistan last week, with rumours that offer similar to that committed on the very large crude carrier (VLCC), New Inspiration, last week, was being seen in both markets, resulting in the deal becoming a potential candidate for either destination.

Total tonnage at Gadani Port last week was reported at 33,229 LDT, up by 52% w-o-w.

Prices in $/LDT
Source- SteelMint Research

What may happen?

Overall, the sentiments are likely to remain stable as most recyclers are looking forward to take advantage of these high prices.