Vessel prices in the subcontinental markets continued their uptrend driven by a tight supply of tonnages. Bangladeshi recyclers remained the top buyers of scrapped vessels, this week, even as Gadani-based buyers competed closely. Indian recyclers stayed way on sluggish domestic steel demand. Markets in Turkey remained silent amid Eid festivities.
Indian buyers continue to bid lower for vessels on muted domestic demand. The economy is yet to recover from the second wave of COVID-19 while concerns of the third wave continue to damp sentiment.
End buyers are quoting lower than $30-$40/ldt for vessels compared to Pakistani and Bangladeshi yards.
Mills are staying away from imported scrap due to the widening gap and are focusing on procuring domestic scrap.
The daily Davis index for HMS attachments and Melting, Friday, rose by Rs100/mt ex-Alang from the previous week.
Bangladeshi yards were the top buyer this week with deals crossing the $600/ldt mark on bullish domestic market sentiment. Buyers are mainly interested in booking small and mid-sized tonnages.
The nationwide lockdown has been lifted till July 22 for Eid festivities and post-July 23, a strict lockdown will be maintained for the next 14 days.
Pakistani end-buyers are showing interest in buying mid-sized vessels. Yards bid slightly behind their Bangladeshi counterparts. Currently, activities have slowed down in Pakistan due to Eid. The market is expected to remain quiet until June 25. Container prices are at $590/ldt and Pakistani buyers would have to offer more than $600/ldt to beat Bangladeshi buyers.
Markets in Turkey are shut till July 26 for Eid celebrations. COVID-19 cases have started to increase in Turkey due to certain relaxations and an upsurge of tourists. A marginal number of sales and local deliveries were heard, and markets are expected to remain calm during holidays.