Subcontinental shipbreaking market maintains uptrend on the back of healthy demand from mills along with rising prices in the prior week. However, in Europe, the European Commission expressed reluctance to approve high standard Indian yards in their list leading to limited capacity in the EU-approved yards.
India is trying to match other subcontinental regions like Pakistan and Bangladesh which witnessed a sharp rise in prices in the prior week. The manufacturers in India find it unviable to secure imported shredded steel due to rising raw material prices and consequently, their input cost. Mills are meeting their demand through domestic scrap causing the local steel prices to improve by $12/mt despite high volatility.
The ongoing farmers’ agitation in cities like Delhi, Kolkata and Mumbai has led to supply chain disruption and have brought logistic movement to a halt.
Markets in Pakistan have picked-up pace. The prices for vessels has increased in the last two weeks. The price of finished steel, however, has not witnessed a similar rise. Pakistan is looking to secure more tonnages as its left empty-handed after the larger LDT units have gone to Bangladesh following the breakdown of the cartel.
After the breakdown of cartel, prices have witnessed an uptick with deals being reported at impressive rates. Cash buyers have increased their appetite to secure tonnages.
A deal for Berge of Singapore VLOC ‘BERGE LHOSTE’ with tonnage 38,832ldt was concluded at $420/lt ldt on ‘as is’ basis and with 350mt of bunkers remaining on board, included in the sale.
Market in Turkey continues to remain firm over the last week as local steel prices have again risen by $5/mt. Imported scrap is $10/mt higher, compared to the prior week.