Wirana Shipping has noted a positive shift in India’s ship recycling market, driven by rising steel demand. The latest Market Outlook reveals a second consecutive week of increased steel prices, with local plate prices up by $4/MT and semi-finished products rising by $2–4/MT. Despite unchanged recycler offers, there is optimism for price improvements if demand remains strong. Additionally, foreign-exchange inflows of $41 billion since June have bolstered the local currency slightly, despite high oil prices.
In contrast, Bangladesh’s ship recycling market is struggling. Domestic steel demand is sluggish, leading to reduced recycler offers. While local steel plate and scrap prices have risen by $4/MT and $2/MT, respectively, imported shredded scrap prices have dropped by $5/MT. Recyclers are looking to cut offers by $10–15/LT LDT, and difficulties in opening Letters of Credit are further pressuring the market. Wirana Shipping anticipates continued pricing pressure in Bangladesh.
Hitesh Vyas, Vice President of Wirana Shipping, emphasized the need for sustained improvement in India before declaring a stable market. He noted that Bangladesh faces challenges from slow demand and financing issues, which will significantly impact pricing. However, the encouraging signs in India could lead to better recycler prices in the near future.
