Asian ship-breaking prices remained stable over last week although no fresh deals were reported. With the conclusion of the Eid holidays, safe navigation and propulsion (SNP) activity resumed in the sub-continent , and prices gained despite a decline in Indian steel plate prices by about $9/ton (t) week-on-week (w-o-w).
Bangladesh
Bangladesh returned to the sub-continent recycling market post-Eid holidays. Although supply of units slowed down a little, ship breaking prices increased to around $500/ light displacement tonnage(LDT), despite a decline in scrap prices. As per sources, many owners have started selling off their units at these historically high rates and are expecting several more deals to be clinched at such levels as the monsoon is about to approach.
- A drilling rig, called Mopu Satu (under tow), of 9,105 LDT, was beached at Chattogram Port.
- Two tankers, namely, Belogorsk (2,184 LDT) & Freemont (16,237 LDT), also arrived at Chattogram Port.
- The total tonnage reported last week at Chattogram Port was 47,307 LDT, down by 47% w-o-w.
India
The vessels coming to India are largely non-ferrous stainless-steel tankers and there has been a distinct lack of Hong Kong Convention (HKC)-compliant green units. As per sources, Alang recycling yards remained mostly closed due to shortage of oxygen supply amidst the Covid-19 second wave. Local steel plate prices weakened marginally last week, re-adjusting by about $9/t. Additionally, the Indian rupee is now trading .at 72 against the US dollar.
- One floating production storage and offloading (FPSO) unit, called Berge Helene (under tow), of 47,887 LDT was beached at Alang Port.
- One general cargo, namely Glocem (1,217 LDT), was beached at Alang Port.
- A chemical tanker, Glory (2,364 LDT), and another tanker Gulf Glow III (2,889 LDT), arrived at Alang Port.
- The total tonnage at Alang Port last week amounted to 97,158 LDT, up 14% w-o-w.
Pakistan
Pakistan surpassed its Bangladeshi counterparts on price, such has been the growing demand for large LDT vessels from Gadani Port . As per sources, recycling yards seemed poised to restart activity after the Eid holidays and especially after being on the side-lines due to the Covid-19-led lockdown. End –buyers are now back to business and looking to fill their emptied plots once again.
- A tanker, namely Green Belt (2,350 LDT), was beached at Gadani Port.
- An FPSO unit, Perisai Kamelia (23,577 LDT), and a barge, namely Michelan 286,(1,600 LDT), arrived at Gadani Port.
- Total tonnage at Gadani Port last week was reported at 29,674 LDT, up by 46% w-o-w.
Prices as on 24th May’21
Prices in $/LDT
Source- SteelMint Research
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