The South Asian ship recycling market showed a mixed trend w-o-w. In India, subdued activity prevailed amidst limited tonnage availability and competitive pricing from neighbouring markets, exacerbated by ongoing elections. However, anticipation of the present government’s victory buoyed optimism, promising infrastructure development and boosting prospects for steel demand and vessel prices, particularly in Alang. Conversely, Pakistani recyclers faced challenges, trailing behind Bangladeshi and Indian counterparts due to unfavourable market conditions and a depreciating currency. Meanwhile, Bangladeshi recyclers emerged rejuvenated from the Ramadan/Eid break, securing high-priced sales and demonstrating resilience in the face of market fluctuations.
Offers for tankers and containers edged up $20-30/t in India, while remained unchanged in Pakistan and Bangladesh w-o-w.
INDIA
This week, India’s ship recycling market remained quiet due to limited tonnage and competitive pricing from neighboring countries. The ongoing elections, starting on 19 April, are also deterring buyers. However, optimism surrounds the likely victory of the current political party, promising infrastructure projects. Cash buyers anticipate a rise in steel demand and vessel prices, particularly in Alang, the main ship recycling hub. Recent fluctuations in local steel prices and the Indian Rupee’s value are noted. Despite strong fundamentals, Alang faces competition from nearby recyclers. With the anticipated win of the present government, increasing vessel availability, and the upcoming monsoon, Alang buyers may adjust pricing assertively, shaping an intriguing outlook for India’s Q2 market.
Notably, Alang received no new tonnage for the second consecutive week.
PAKISTAN
Pakistani ship recyclers fell behind their Bangladeshi and Indian counterparts this week, losing out on favored vessels. While Far East vessels favored Bangladesh, Alang buyers surpassed Gadani offerings, boosting competition. Despite stable local steel prices, the PKR (Pakistani Rupee) depreciated, ending at PKR 278.64 against the US Dollar. Southwestern Pakistan faced harsh weather, with heavy rains and floods causing casualties. With uncertain freight rates, Pakistani recyclers faced challenges in readjusting their strategies.
The total tonnage received in Gadani port was around 5,282 LDT this week.
BANGLADESH
As Bangladeshi recyclers returned from Ramadan/Eid break, they were revitalized with fresh LCs. A few high-priced sales flooded Chattogram, with around 10 vessels and 103,000 LDT of diverse tonnage. Despite a shaky freight market, overaged unit owners seize the price surge but fall short of the coveted $600/LDT mark. Local sentiments remained positive despite flatlining steel prices and a slight depreciation of the Bangladeshi Taka. Bangladeshi buyers capitalized on favorable conditions, leading the market into 2024 with confidence.
The total tonnage received at Chattogram port was around 102,850 LTD this week.
