South Asia: Imported ship-breaking offers firm, but Bangladesh prices rise $20/t w-o-w

Imported ship-breaking offers from South Asia were stable last week on account of two factors. One was the firmer steel plate prices during the prevailing monsoon. Secondly, there was an increasing lack of tonnage available, which further weakened offerings from the sub-continent.

India

Offerings from Alang were the lowest in the sub-continent , but demand here, ironically remained strong. An overall decrease in steel plate prices, along with the depreciating rupee (INR) led to an almost  10% decline in prices, which is making it tough for India to compete with the Pakistani and Bangladeshi markets.

However, according to sources, there has been a relatively steady supply of specialist and offshore units, along with a couple of green vessels, for Indian end buyers.

• An oil tanker, Azov Sea (9,691 LDT), beached at Alang Port.
• A supply vessel, Vighnaharta (1,230 LDT), was also beached at Alang Port.
• Bala, a RoRo vessel, of 12,073 LDT, arrived at the port.
• Total tonnage at Alang Port last week amounted to 34,918 LDT, down by 23% w-o-w.

Bangladesh

Bangladesh continues to lead the sub-continent recycling market with some amazing deals concluded in Chattogram last week, pushing up imported ship-breaking offers by up to $20/tonne w-o-w. However, the tonnage was down more than 50% w-o-w.

However, the government has extended the ongoing lockdown across the country for yet another week, as the aim is to control the worrying spread of Covid-19.

• A reefer, Hua Jian 107, of 2,665 LDT, arrived at Chattogram.
• Pacific B, a heavy lift carrier of 15,931 LDT, arrived at Chattogram.
• A bulk carrier of 20,980 LDT, Win Win, was also beached at the port.
• Total tonnage reported last week at Chattogram Port was 64,217 LDT, down by 51% w-o-w.

Pakistan

Although Gadani Port has been strongly competing on available tonnage, it has missed out on some of  local units to an impressive Bangladeshi market. Sources believe  the second half of the year will be bullish for the Pakistan ship-breaking market when local buyers would be looking to divert many more decent LDT vessels from Bangladesh and Indian competitors.

• A tanker, Dubra (8,392 LDT), beached at Gadani Port.
• Two barges, Yabri (1,800 LDT) and Julnar (1,600 LDT), arrived at Gadani Port.
• Total tonnage at Gadani Port last week was reported at 126,779 LDT, up by 14% w-o-w.

Prices as on 12th Jul’21

Prices in $/LDT
Source- SteelMint Research