South Asian ship-breaking prices remained stable week-on-week (w-o-w) as a greater degree of awareness seems to have entered the market last week, both at the cash and end buyers’ end, as more buoyant offerings were seen over the past few months.
Bangladesh
The Bangladesh’s market was relatively quiet last week as the recyclers fell behind their Pakistan counterparts, particularly for the largest units currently on offer. It would be the best time to purchase smaller light displacement tonnage (LDT) vessels as there is high risk involved in the longer cutting times involved on larger LDT units during rainy season. The market also gets slow during this time. As per sources, very few deals have been struck recently to satisfy a decent local demand.
- A vehicles carrier, Since (under tow), of 15,442 LDT and a heavy lift carrier Zhen 17 of 17,551 LDT arrived at Chattogram Port.
- Two tankers, namely Luck Grow 889 (2,168 LDT) and Med (20,585 LDT)also arrived at the port.
- The total tonnage reported last week at Chattogram Port was 136,817 LDT, up by 11% w-o-w.
India
Despite a rise in steel prices by nearly $20/tonne (t) w-o-w, the supply of vessels to India were mainly non-ferrous (stainless steel) units. As per sources, the country is still battling Covid-19. As a result, most of the recycling yards are closed and inward clearance of incoming crew is getting delayed. Many owners are avoiding deliveries to Alang for the time being.
- A mobile offshore drilling unit (MODU) namely Rover (under tow) of 18,889 LDT, arrived at Alang Port.
- An OSV, namely Tag 17 (1,425 LDT) was beached at Alang Port.
- A chemical tanker, Falcon (6,695 LDT), and another one, Shun Li of 2,427 LDT, arrived at the port.
- The total tonnage at Alang Port last week amounted to 63,625 LDT, up by 162% w-o-w.
Pakistan
Pakistan’s ship breaking market improved and slowly started to chip away at Bangladesh’s share of tonnage. The budget is reportedly coming up on 11 June’21 and (will come into effect on 1 July’21) and, as such, all eyes will be on the outcome of the budget as few changes in the ship recycling sector are expected as monsoon is about to approach. As per sources, with a growing demand and firm price outlook, a greater number of vessels could be concluded for Gadani over the coming months.
- A tanker, namely Elka Vassiliki (17,000 LDT) arrived at Gadani Port.
- Two tankers, namely Nolla (1,828 LDT) & Toteel (1,944 LDT), were also beached at Gadani Port.
- Total tonnage at Gadani Port last week was reported at 31,895 LDT, down by 53% w-o-w.
Prices as on 7th Jun’21
Prices in $/LDT
Source- SteelMint Research
Leave a Reply