End-users in the major ship recycling locations are waiting for clarity in domestic market trends and prices. The lack of units available for recycling has assured consistency in prices being offered by recyclers for securing tonnage amid weak sentiments in the ferrous scrap market. Shipbreaking import prices remained stable in India, Bangladesh and Pakistan w-o-w.
Bangladesh suffering from LC issues
Buyers in Chattogram are looking for smaller vessels to satisfy their existing demand, which hasn’t yet begun to indicate a significant uptick. Due to fluctuating demand and continuing difficulties in issuing LCs, the majority of recyclers have moved to the sidelines.
Due to unfavourable weather and the suspension of government-funded projects because of financial issues, the domestic steel market is weak.
Deals
Total tonnage reported last week at Chattogram Port was 116,580 LDT.
Weak sentiments in India
The end-users are only moderately interested in current offers. Due to the prolonged rainy season and weak demand outlook, need-based purchasing was seen in a majority of the regions.
Moreover, the Indian rupee suffered some losses and is currently trading at 82.5 against the US dollar.
Deals
Total tonnage at Alang Port last week was 34,060 LDT.
Bearish outlook in Pakistan
Owing to a poor finished steel demand, market activity has remained subdued. October is typically a month of high demand in this region, but this year the scenario is quite different because many steel mills have temporarily stopped operations.
Deals
Total tonnage at Gadani Port last week was 23,470 LDT.
Prices in $/LDT
Source: SteelMint Research
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