Subcontinental shipbreaking market is showing signs of stabilization, especially in Bangladesh where the prices are gradually on a mend and is likely to be followed by India and Pakistan as well, according to a GMS report. China’s return as a scrap importer is likely to impact the prices in the near future. Market activities, which have slowed down due to a weeklong Lunar New Year holiday, is expected to rebound after the break.
The market sentiment is positive and prices have improved after the government’s budget announcement to double ship recycling capacity by 2024. Once China returns to business in late-February, demand and prices for steel will continue their upward trend. The Indian currency has also appreciated against dollar at Rs72.8.
A deal for Vafias owned 2006 built Aframax tanker ‘Marquessa’ with tonnage 18,090ldt concluded at $320/lt ldt on ‘as is’ basis.
The domestic steel and imported scrap prices have bottomed-out, leaving buyers in a confused state. But, the shipbreaker expect the prices to bounce back soon after Chinese New Year holidays.
Also, Pakistan is set to begin the construction of a new shipyard in Gwadar, a port city in Balochistan. The new shipyard is expected to boost commercial shipbuilding, repair industry, generate employment and promote economic growth in the region.
Shipbreaking scrap prices have fallen after witnessing sessions of gains in early-January. Some end-buyers have concluded high-prices deals during the recent falls creating obstacles for others. On the sales front, a deal for Panamax bulker Rigel with tonnage 10,156ldt was concluded to a Bangladeshi recycler at $449/lt ldt.
The imported scrap prices have started to show upward trend and have risen by $12.36 by the end of the prior week. The Turkish Lira has also firmed up and stands at TRY6.98.