Indian shipbreaking industry hopes for markets to improve soon after the official notification for reopening comes through, according to GMS weekly. Steel plate prices were supported by a positive market sentiment on the back of Rs20,000bn stimulus package for the economy.
According to Davis Index analysis, 12mm sheet prices increased by Rs700/mt to Rs25,200/mt on Tuesday from the week prior. Local melting price rose by Rs700-800/mt to Rs22,600/mt in the same period.
The UAE government’s ban on ferrous scrap exports for four months is also likely to give the domestic shipbreaking scrap prices a lift, especially in India and Pakistan. This has motivated cash buyers to take speculative positions and commit vessels at higher levels over the recent weeks.
Last week though shipbreaking activities had restarted, the industry was struggling to find a foothold. Indian yards struggled to gain momentum with 70pc labours unavailable, while demolition in Bangladesh and Pakistan was subdued amid the ongoing Ramadan holidays.
In Bangladesh, prices had dropped by almost $100/ldt to low $300/ldt. But negotiations for new vessels could paint a different picture.