South Asia: Imported ship breaking offers up $10 w-o-w

Imported ship-breaking prices in the Asian markets saw an uptick of $10/LT week-on-week (w-o-w) on rising global steel prices and fierce competition between Pakistan and Bangladesh on limited tonnage.

Bangladesh

Bangladesh took the lead in the sub-continent recycling market last week. WIth the Eid holidays approaching next week, Bangladesh ship recyclers could take some time off to enjoy the festival. At present, the market is showing some signs of slowing down with the monsoon season round the corner, which traditionally slows down the sector. A majority of the large light displacement tonnage (LDT) vessels (including VLOCs and VLCCs) have ended up in Bangladesh this year.

• One MPP/RoRo,Searoad Tamar (5,541 LDT), arrived at the port.
• Two tankers, Ocean Amethyst (9,077 LDT) & Shuen Far 168 (2,316 LDT), arrived at the port.
• The total tonnage reported last week at the Chattogram Port was reported at 42,951 LDT.

India

India continues to reel under the weight of record Covid-19 cases and deaths on a daily basis. This is taking a toll on the ship recycling market As per sources, despite plots being closed, sales and offers continued to take place, especially for specialist/non-ferrous and HKC units on strong fundamentals like soaring steel prices in the local market.

• A Singapore-controlled stainless steel tanker, FALCON (6,694 LDT) ,fetched $750/LT (with 1,100 t solid stainless steel on board).
• One bulker, Texas Enterprise (7,646 LDT), arrived at the port.
• The total tonnage at the Alang Port last week was 42,567 LDT.

Pakistan

Ship recycling activities in Pakistan improved last week which may get disrupted to a certain extent with the Eid holidays coming up. However, this is less likely to sustain after the holidays as demand in the local market is strong.
As per sources, the ship recycling sector was affected this week as the yards were forced to shut down due to increasing Covid-19 cases across the country.

• A barge, Ruwaya, was beached at the port (2,100 LDT).
• Two supply ships, Capitano Gee (1,362 LDT) & Ocean Drum (877 LDT), arrived at the port.
• The 1998-built handy bulk carrier Vika recently fetched $550/LT.
• Ro-Ro/passenger ship Birden (4,337 LDT) arrived at the port.
• Total tonnage reported at Gadani Port last week was reported at 49,471 LDT.

Prices as on 10th May’21

Prices in $/LT
Source- SteelMint Research