Subcontinental shipbreaking market witnessed a downtrend amid falling prices for plates as well as steel in Turkey. End-buyers had already booked tonnages before New Year. Container shortage was also one of the factors impacting rolling scrap supply.
The domestic steel prices have risen significantly by $216.9/mt, compared to July 2020 and are higher than the import prices. The price for HMS 1&2 (80:20) UAE-origin is $416/mt cfr. Demand for steel has witnessed an upward trend backed by healthy demand from construction and auto sector pushing the prices up. Prices are expected to remain firm in the near future.
The ship recycling market in Pakistan remained quiet in the prior week with no new vessel deals due to volatility in prices. Buyers are cautious as prices have increased significantly.
The prices in Bangladesh dropped due to supply glut of ferrous scrap globally. Consequently, owners and cash buyers with tonnage saw unsold units, or sold at lower prices. No fresh deals were concluded in the week prior, but the market activity is expected to resume in the near future. Meanwhile, a vessel with tonnage 190K, Ldt beached this week.
Steel prices have softened by around $8/mt since the prior week and imported scrap prices decreased by $18/mt. As a result, offers and bids differed by $5/mt.
In the meantime, three small vessels with tonnage 8,000 Ldt arrived at Aliaga’s waterfront this week, however demand remains sluggish.
Also, export tax duty which is to be levied on Russian scrap from February is likely to affect global scrap prices.