Subcontinental vessel buyers remained cautious as global steel prices were range-bound. In Bangladesh and Pakistan, buyers were silent after the announcement of annual budgets and onset of monsoon.
COVID-19 cases are declining across India and oxygen supply also getting back to normal in the ship recycling yards in Alang. Demand for steel plates is firm from the domestic market as lockdown restrictions are being eased.
Bangladeshi recyclers are also witnessing slowdown in steel prices due to arrival of monsoon which generally slows down demand, and they have started losing some bigger units to Pakistan lately due to the improving market at Gadani.
Markets in Turkey improved in the past week and imported ferrous scrap prices moved north amid firm local demand.
With easing of oxygen supplies to domestic recycling yards, shipbreaking activities have resumed this week. Mills in India are focusing on exports as inquires have increased from the Asian markets.
Shipbreaking scrap prices rose in the previous week on uptick in demand from the rolling mills. The index for HMS attachments and Melting rose by Rs700/mt ($9.57/mt) ex-Alang. A container named Dole Costa Rica of 8,308 ldt was recently bought at $593/ldt.
Pakistani buyers were active this week and focused on bidding for large-sized units. The new annual budget guidelines will be implemented from July 1 and buyers are looking for vessels which will get delivered before June 30.
Buying activity has been slow in Bangladesh post announcement of the annual budget. Prices of imported scrap rose while local sentiments were weak amid monsoon’s arrival.
The impact of reduction of the tax deducted at source on the supply of iron and iron products from 3pc to 2pc in the budget will not be felt much in the industry amid soaring prices.
VAT has been reduced to the tune of 4pc, with ‘advance tax’ being withdrawn, which is expected to initial have a positive impact on the sector. However, in the long run, ship prices will go down due to a reduction in this duty
Markets in Turkey remained firm with imported price moving up by $5/mt. One Dredger of about 6,000 ldt and a Research unit of about 3,000 ldt has arrived in Aliaga this week.
Lira rallied 2pc in the previous week to its strongest level. The lockdown restrictions are likely to be continued during the weekends as the number of COVID-19 cases in the country is still high.