Indian and Pakistani shipbreakers aggressively bought scrapped vessels as domestic shredded scrap prices in both countries hit yearly highs. Pakistani recyclers held their bids $30/ldt higher than other subcontinental buyers to attract maximum tonnage, however, market participants are not sure of until when this aggressive buying streak would last.
Bangladesh market remained on backfoot as compared to India and Pakistan as they booked a lot of Cape and VLOC tonnages in the prior weeks. Bangladesh witnessed minimal trading activity this week. Large tonnages are anchored at the ports and are yet to be cleared. Recyclers are struggling with lower-than-anticipated steel demand. Floods have affected 34 districts and hampered the movement of goods within the country. Demand for scrap is expected to rebound in the near term.
Indian shipbreaking market reported decent trade as scrap prices spiked in Alang. Demand for billets, rebar, HRC/CRC in the local market has improved. Shipbreaking rolling scrap prices Monday surged by Rs500-600/mt from Friday. Demand for plates has also improved.
Recyclers are aggressively bidding for tonnages that are sailing from the far-east to the sub-continent, which are specifically for green recycling purpose. Demand from mills in the North is stable but has slowed in Mumbai due to torrential rains.
Two container vessels with a total tonnage of 2,1731ldt and 7,129ldt traded at $310/ldt and $268/ldt, respectively, late last week.
Pakistani recyclers continue to aggressively buy vessels amid robust demand. Yards seek to bring more tonnage onto their empty plots as the market reopens after a two-year break.
As per the Federal Board of Revenue, additional 2.5pc duty may be imposed in the form of withholding tax, that is to be paid at the time of importing the vessel. Market participants are expecting the prices to drop by $10/ldt, but irrespective of this recyclers will compete at higher price levels.
On the deal front, a Woodchip carrier of 10,367ldt traded at $361/ldt last week.
Markets in Turkey cooled-off after a prices rose in the past week. Trade volumes dropped as many yard owners are in a holiday mood. Post Eid, there has been a surge in the number of COVID-19 infections in the country. Prices for scrapped vessels remained stable. Several vessel are likely to head toward Turkey in the next few weeks, said traders.