South Asia: Ship-breaking prices volatile but demand firm

Ship-breaking prices in the South Asian markets remained volatile w-o-w. It has been somewhat an uncertain period for both Bangladesh and Pakistan markets, with prices falling amidst bearish sentiments throughout the week, especially in Chattogram. However, despite limited deals, demand remained firm.

Bangladesh

Bangladesh’s annual budget  announced last week brought good news for the domestic ship recycling sector. The Advance tax(AD) on imports of industrial raw materials has been reduced to 3% from the earlier 4%. However, ship prices in the long term are expected to decrease due to a reduction in this duty. As per sources, steel plate prices already started declining last week in Chattogram.

• A bulker, Win Win of 20,980 light displacement tonnage (LDT), was sold at $578/LDT.
• Two tankers, namely CE-Niris (16,337 LDT), and Hua 1 (16,062 LDT), arrived at Chattogram Port.
• A hopper dredger, Gory (under tow) of 21,186 LDT, was beached at the port.
• The total tonnage reported last week at Chattogram Port was at 154,228 LDT, up by 13% w-o-w.

India

Covid-19 cases across India have finally started to slow down from the horrific peaks seen a few weeks ago. Oxygen supplies to domestic recycling yards also resumed this week. As per sources, recycling activities,  which left an overall positive impact on steel prices/demand and vessel prices last week in Alang, can finally resume.

• A container, DOLE COSTA RICA (8,308 LDT), was concluded at $593/LDT.
• A floating production storage and offloading (FSPO) unit, namely Producer of 34,460 LDT arrived at Alang Port.
• A reefer, Ice Ranger (6,931 LDT), was beached at Alang Port.
• An oil tanker, Nori (under tow) of 3,199 LDT was also beached at the port.
• The total tonnage at Alang Port last week amounted to 110,854 LDT, up by 74% w-o-w.

Pakistan

Pakistan is moving ahead with several large LDT deals concluded the country recently. The budget did not have any negative impact on the local recycling industry. As per sources,  some additional guidelines have been released this week on the thorough cleaning of tankers arriving in to the country.

• A tanker, namely Elka Vassiliki (17,000 LDT), was beached at Gadani Port.
• Two tankers, namely Hazel (9,570 LDT) and Rama 1 (2,664 LDT) arrived at the port.
• Total tonnage at Gadani Port last week was reported at 29,234 LDT, down by 8% w-o-w.

Prices as on 12th Jun’21

Prices in $/LDT
Source- SteelMint Research