The key ship recycling markets in South Asia are reeling under the foreign exchange crisis, sluggish economy and low steel demand from end-user industries, turning market sentiments gloomy and buyers cautious. However, offers from recyclers in all the three countries remained stable against the last week on continued buying at current levels.
Indian market currently most reliable
Due to the shortage of units in the recycling market, end-buyers were seen bidding competitively to secure tonnage. However, Alang recyclers kept their offers unchanged w-o-w. It is expected that recyclers could raised offers to remain competitive to Bangladesh as the latter is also attempting to get tonnage to fill their emptying plots.
Due to the challenges with L/Cs in Bangladesh and the expectedly low performance of Pakistani market for much of this year, Alang is undoubtedly the most reliable market at the present.
Deals
Total tonnage at Alang Port last week was 18,870 LDT.
Offers from Bangladesh steady
Due to the gloomy outlook of domestic steel market, the bid prices from Chattogram’s consumers did not increase further last week. But to keep the yards operational and get ready for the anticipated increase in steel demand from the construction sector in the forthcoming winter months, recyclers are looking for small-sized tonnages.
Deals
Total tonnage reported last week at Chattogram Port was 63,948 LDT.
Floods cripple Pakistan
Pakistan is still dealing with flash floods caused by the nonstop rains. One third of Pakistan is currently said to be under water as a result of the huge destruction caused by floods.
Thus, due to the incredibly poor pace of domestic demand, many steel mills around the nation have either slowed down their operations or temporarily shut down.
Total tonnage at Gadani Port last week was nil.
Prices in $/LDT
Source: SteelMint Research
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