The ever-growing demand for steel and lack of tonnage supply is pushing the prices to greater heights week on week. With freight rates being at an all-time high for containers and bulkers, very few units where the recycling process takes longer, are being floated in the market and there is a sharp disbalance in demand and supply.
Pakistan and Bangladesh are leading the subcontinent market. The competitive prices being offered by end buyers are luring owners of aging vessel to cash in on the soaring steel prices.
Shooting COVID-19 cases and the unprecedented high demand for Medical oxygen has completely disrupted the steel cutting activities in Alang, India. Many countries including the UK, Hong Kong, UAE, and Canada have banned flights from India whereas the U.S., Israel, Singapore and Australia have significantly reduced the number of flights coming from India.
Chinese steel mills have ramped up production as the steelmakers are enjoying healthy margins amid rising finished steel prices. It is quite a challenge for the Chinese government to get mills to lower production for environmental reasons in the current market scenario.
Oil prices have remained volatile as mixed economic indications are coming from different parts of the world. While the U.S. and China are showing strong growth recovery signals, Europe (except UK) and Indian subcontinent are still reeling from deteriorating coronavirus situation.
On account of St. George’s Day, we extend our warm wishes to our fellow British friends celebrating this day. May the righteousness of Saint George continue to inspire us and fill our hearts with love and faith.
Recycling activity has significantly slowed down this week due to rising number of Coronavirus cases throughout the country. Strict lockdown measures and quarantine rules may hamper the crew movement in the coming days and cause disruption in taking vessel deliveries.
Major steel mills have diverted their oxygen reserves to the hospitals running out of oxygen which will impact production levels of mills and cause shortage of steel in the domestic market.
Bangladesh is leading the price board in Subcontinent market by offering highest prices supported by strengthening local steel plate prices.
The ongoing nationwide lockdown has been extended by another week till April 28 in view of the current surge in Covid-19 cases and deaths in the country.
The end buyers from Pakistan are quite actively negotiating to secure tonnage as their steel prices and demand remain strong for prompt deliverable units.
Imported scrap levels dropped by 13% this month as the mills remained active in procuring domestic scrap.
One LPG carrier has arrived in Aliaga this week.
Import scrap prices have improved by USD 5/MT while the domestic scrap prices remain same week on week.
Turkey's Lira tripped 2% to its weakest this month on Thursday and is currently being traded at TL 8.32/USD.
Turkey is currently under 82-hour-long curfew to contain the spread of COVID-19 cases. We wish all our readers from Turkey, a very Happy National Sovereignty and Children’s Day.