Global steel prices continued its uptrend over the week. Shipbreaking yards in Pakistan and Bangladesh are bidding aggressively to secure tonnage. There has been a shortage of HKC-specific green units and off-late supply of vessels to India were largely non-ferrous stainless-steel tankers.
Most of th yards in Alang in India were shut last week due to cyclone Tauktae. Meanwhile, cyclone Yaas is expected to hit the eastern coast of India by May 26-27.
Ship recycling activity in Gadani in Pakistan is expected to resume this week while lockdown in Bangladesh has been extended for another week.
As Eid holidays ended, Turkey also resumed ship recycling activities as domestic steel prices continued to remain firm .
Container prices improved with Bangladesh quoting at $560/ldt, Pakistan $550/ldt, India $520/ldt and Turkey at $300/ldt.
Monsoon months in the subcontinent will determine if prices would be able to sustain at the current levels, as traditionally markets are slow during the rainy season.
Yards in Alang were largely shut due to the shortage of oxygen cylinders, which has been diverted for medical use. Local steel plate prices declined last week and the index for HMS attachments and Melting declined by Rs1,300/mt ex-Alang on Friday as compared to the previous week.
Demand from the construction and automobile sector also remained low, with the index for 1kg plates declining by Rs1,300/mt ex-Alang in the same period.
Bangladesh is currently bidding for mid- sized vessels and avoiding investing on larger vessels as they are expecting the prices — currently at its peak — to go under pressure soon.
Offers for imported scrap increased due to shortage of domestic scrap which has also moved local scrap prices northwards after the Eid holidays.
Pakistani buyers are looking to secure geographically positioned tonnages and are expected to surpass Bangladesh on price due to growing demand for large ldt vessels at Gadani.
Market participants have returned to the market after a long holiday from May 8-16 and buyers are looking to fill their empty plots again with the tonnage.
Post-Eid, it has been a busy week in Turkey as lockdown restrictions have been eased and many local businesses were back to work. Looking at the firm local demand, market is expecting surge in tonnages from offshore sector. Imported HMS 1&2 (80:20) prices rose by $8/mt cfr Turkey and local scrap prices rose by $20/mt.