Shipbreaking markets were silent last week in the Indian Subcontinent amid rising COVID-19 cases. Steel prices continued to rise further for the second week due to increased freight rates and active demand in China.
Ship dismantling activities and Alang and Gadani largely remained shut. Market participants are also awaiting a clear price direction from the scrap market before making purchases.
A severe tropical cyclone named Tauktae was hovering near the western coast of India, keeping Alang shut on Monday. Weather alerts have been issued even in adjoining areas.
Scrapped container ships’ prices have reached $560/ldt in Bangladesh, $550/ldt in Pakistan, $520/ldt in India, and $300/ldt in Turkey.
With the daily COVID-19 tally continuing to rise in India, ship deliveries remain impacted. Sellers in a bid to safeguard their crews are reluctant to dock their ships on Indian coasts. The shortage of oxygen cylinders has also impacted recycling activities. End users are expecting trades to improve once the oxygen supply resumes.
The government has proposed to reduce or withdraw import duties on steel to reduce the pressure on MSMEs. But steel producers fear it would flood the market with cheap imported steel.
Shipbreaking scrap prices rose this week by Rs800-1000/mt ($10.9-$13.6/mt). Domestic mills in Gujarat were seen buying on a need basis and were focused majorly on tapping export markets as domestic sales are low.
Bangladesh was inactive in the market last week due to Eid festivities. Ship plate prices trended up despite the lockdown extending due to the increase in COVID-19 cases.
Shipbreaking markets in Pakistan were silent due to the Eid Holidays. But, local steel demand increased and end buyers have been offering competitive prices to secure tonnages. Post holidays Pakistan is expecting a surge in demand, and prices could reach new highs.
Imported scrap prices in Turkey rose by $20/mt in the previous week, and the vessel prices reached $300/ldt.