Markets - Recycling - Bangladesh loses its crown

Nov 15 2019

For the first time this year, the top spot on the sub-continent demo rankings was relinquished, as a beleaguered Bangladeshi market plummeted from first place down to last, GMS reported.

Collapsing local steel plate prices was the primary contributor to the fall and the BSBA (Bangladesh Shipbreakers Association) tried to restrict all purchases for its members at the $350 per ldt mark – and for this first week at least, all offers seemed to be coming in at these low levels.


Notwithstanding, it remains to be seen if any sales will take place at such bargain rates, given that both of the competing sub-continent markets (India and Pakistan) are now placed well ahead of Chittagong.


At present, many domestic yards are booked with tonnage. As a result, there is hardly a demand for fresh units that many had been hoping to push prices up, once the fourth quarter started.


Instead, Chittagong is facing a decline in prices that is in excess of $100 per ldt from the peak levels seen earlier this year. It may be worth avoiding this market for the foreseeable future, whilst prices and sentiments are so low, GMS said.


On the other hand, India has stabilised of late, and it is the Alang recyclers who usurped their Bangladeshi counterparts last week, by finishing as the top ranked market for the first time this year.


Wrapping up the sub-continent locations is Pakistan, where interest and levels seemed to be firming. However, the ongoing lack of fixtures left local levels undetermined, as most recyclers were hesitant to match the asking prices on the units being proposed.


Finally, Turkish steel plate prices continued to make marked improvements, gradually regaining ground and approaching levels prior to the recent collapse. On the back of this improvement, local offerings have reportedly firmed.


Overall, however, there remains a dearth of units available for scrap at present, so it may be a while before we see any sort of activity at these lower levels, particularly as freight markets continue to perform admirably in the fourth quarter of this year, GMS concluded. 


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