Bids for scrapped vessels rallied in the subcontinental market as Bangladeshi buyers dominated with aggressively bidding for available tonnages, closely followed by Pakistani yards.
Several deals were reported in Chattogram last week at levels well above $600/ldt. Buyers were supported by a rise in demand for ship scrap in the domestic market amid a recovery in construction activities.
India recyclers remained well behind their counterparts while markets in Turkey were closed for Eid celebrations.
Yard owners in Alang were competing with their subcontinental counterparts by raising their bids. But domestic steel demand remained under pressure with mills focusing on steel export orders.
The daily Davis Index for HMS attachments and melting rose by Rs2,700/mt($36.26/mt) ex-Alang on Friday as compared to a week ago. Container prices quoted at $570/ldt last week.
Bangladesh declared a lockdown till August 5 with all offices, factories and shops. Despite the lockdown, ship recyclers remained active and kept bidding for tonnages and container prices quoted at $610/ldt.
End-buyers in Pakistan were eager to secure tonnages but remained cautious as vessel prices increased.
Major steel mills in Pakistan have increased their finished steel prices by $25/mt due to an uptick in domestic demand. Container prices quoted at $590/ldt.
Markets in Turkey remained shut due to Eid celebrations and imported ferrous scrap prices remained unchanged throughout the week. Mills are expected to make fresh offers when they return to the market this week.