Bangladesh and Pakistan remained the top buyers for scrapped vessels in the week ending Friday. India, however, is slowly picking up and competing for selected vessels in the absence of units available for HKC-compliant recycling.
Scrap prices in Turkey were unchanged despite the weakening of the Lira to a record low.
The new Delta variant of the virus has caused significant disruptions in the subcontinental markets, Bangladesh has announced 7 days strict lockdown starting from June 28, with transport activities except emergency supplies suspended.
Inquiries from buyers in Bangladesh remained healthy. But domestic scrap and steel demand could fall in the coming week.
Imported ferrous scrap prices have also softened by $5-10/mt in the previous week and could decline further this week. In the Jan-June period, a significant number of vessels beached in Chattogram, and the flow of vessels is expected to increase in the near term.
Markets in India remained calm as recyclers are not aggressively bidding for vessels amid low domestic demand.
The new Delta variant of COVID-19 is a cause of concern and shipbreakers fear it could unleash a third wave in the coming months.
The Davis Index for HMS attachments and Melting declined by Rs1,000/mt ($13.47/mt) ex-Alang on Friday from the preceding week.
Imported scrap prices strengthened in Pakistan by $15/mt amid a shortage of domestic scrap and a hike in ship plate prices. Most recyclers were busy taking deliveries of recently booked scrapped vessels.
Major mills in Pakistan have raised their prices by $30-33/mt amid an increase in input costs and tight supply.
Imported ferrous scrap prices remained firm last week. Should Russia’s imposition of export duty come to effect, it will limit the scrap availability to Turkey.
COVID-19 cases are gradually coming under control as vaccination drives are gathering momentum.