South Asia: Ship breaking prices remain stable in recent deals

Asian ship breaking market has observed stability in terms of prices during the week with few deals being concluded in Bangladesh & Pakistan markets. While India continues to struggle with the second wave of Covid-19 pandemic it has taken the focus of cash buyers away from ship recycling.

Bangladesh

With the Holy month of Ramadan underway in Bangladesh and Covid-19 cases rising in the country once again, ship deliveries are expected to be disrupted, especially if the lockdowns are further extended. As per sources, local steel plate prices have registered some noteworthy gains over the past month and this has resulted in some impressive sales in and around the $500/LDT mark.

• The ONTARI (4,828 LDT) tanker was sold by Indonesian owners BULL for $525/LT LDT
• The Vietnamese controlled DAI NAM (9,276 LDT) was concluded at $448/LT basis an ‘as is’ Quang Hinh, Vietnam.
• One Fishing Vessel – Rubinovyy (410 LDT) arrived at the port.
• A Bulk – Germ Spring (8,066 LDT) beached at the port.
• The total tonnage reported last week in the Chattogram port was 90,121 LDT.

India

Due to excessive rise in covid-19 cases, oxygen is being diverted from recycling yards to hospitals where it is so desperately needed. As per the sources, all but a handful of yards are completely shut and it is feared that local recycling activity will be greatly reduced in Alang.

• One Reefer was sold this week as the ICE ROSE (6,828 LDT) fetched an impressive $495/LT.
• One oil tanker – Myrtos (5,671 LDT) & a Supply Vessel namely Endurance (2,292 LDT) beached at the port.
• A Passenger – Colus beached at the port (29,058 LDT).
• The total tonnage at the Alang port last week was 72,682 LDT.

Pakistan

Pakistan is struggling to compete in the recycling market as Bangladeshi price levels continue to surge ahead resulting in no sales secured. As per sources, Steel prices and demand remain well-positioned for any prompt units, but those larger LDT tankers that are available remain tantalizingly out of reach for Gadani End Buyers for the time being.

• A VLCC named Lion (43,500 LDT) & a tanker namely Costina (2,694 LDT) arrived at the port.
• Total tonnage reported at the Gadani port last week was 2,694 LDT.

Prices as on 20th April’21

Prices in $/LT
Source- SteelMint Research