Demand for steel remained firm as the world economy continues to recover with all major countries focused on achieving their vaccination goals and are now fully functional for global trade.
Iron ore prices corrected since mid-July by approximately 35pc which was above $231/mt in May 21. This downtrend has impacted market sentiments across the subcontinental regions, however, the outlook for steel remains positive, which is supporting scrapped vessel prices.
End-buyers in Alang were on a wait and watch mode as price direction was unclear. Domestic demand for steel was minimal and mills are eyeing export orders.
No vessel sales were reported last week amid firming freight markets. The current offer for containers for scrapping is $580/mt.
Shipbreaking scrap prices declined last week as demand remained low from the local rolling mills, the daily Davis Index for HMS attachments and Melting declined by Rs300/mt ($4.07/mt) ex-Alang each on Friday as compared to the previous Friday.
Supply of tonnages remained low in Pakistan hence local buyers returned to the markets with higher bids. Pakistan’s National Tariff Commission has announced a temporary preliminary anti-dumping duty on CRC imports originating from Taiwan, EU, South Korea and Vietnam for four months as domestic manufacturers faced material losses due to dumping. The current offers for container vessels for scrapping are $600/ldt.
Domestic demand for steel in Bangladesh remained subdued due to the ongoing heavy rainfall, the majority of mills kept their offers unchanged and expect the market to gain momentum after September as the monsoon subsides. The current offer for containers for scrapping is $610/ldt.
Imported steel scrap prices declined in Turkey last week by $2-$3/mt and domestic prices declined by $15/mt. 5 small units have arrived with 1,000-2,000/ldt last week.
COVID cases continue to surge in Turkey but the vaccination drives have picked up. The government has decided to reopen schools from Sept 6.