Vessel prices in the subcontinental market were on an uptrend despite a decrease in demand from yards due to the ongoing monsoon season. The supply of tonnage was scarce in the demolition market, increasing vessel prices.
Steel plate prices remained firm in Pakistan and Bangladesh but declined in India.
Vessel prices had doubled from last year to $500/ldt and are expected to reach $600/ldt in the near term.
Domestic demand in India remained sluggish amid the ongoing monsoon and recyclers stayed away from bidding for vessels.
Exports of semi-finished steel have also slowed down due to the low availability of vessels, high freights, a decline in prices in seaborne markets, and quarantine issues.
Demand in the auto and infrastructure segment has been declining due to a lockdown in May and June. There is also a fear of the third pandemic wave.
The arrival of tonnages has declined by 38pc in June as compared to June in the previous year but rose by 6pc from May as per GMS.
Pakistan remained the most robust bidder in the subcontinent for year another week. Availability of scrap is scarce in the domestic market and there is a new tanker regulation for the vessels arriving in Pakistan after a recent accident.
The total arrival of ships rose by 67pc in June 2021 from June 2020 year and declined by 55pc from the prior month.
Bangladesh is under a strict lockdown, which kept the domestic demand for scrap and steel under pressure. Recyclers, therefore, showed low interest in buying large-sized vessels and were keen on buying small tonnage ships.
Imported scrap prices rose by $4-5/mt in the previous week with limited volume deals heard. On Monday, however, prices came under pressure.
Around 26 vessels beached in Bangladesh in June from 16 units in May.