Ship breaking prices rise w-o-w on improved demand

Ship recycling prices saw an uptick of $20/light displacement tonnage (LDT) last week in India and by $10/LDT each in Bangladesh and Pakistan. Local steel plate scrap prices remain positive across the sub-continental markets.

Indian recyclers secure tonnages

Indian ship recyclers finally secured a major portion of the tonnages available in the market last week which also include several HKC vessels.

Meanwhile, Alang’s ship-cutting plate prices fell by $17/tonne (t) w-o-w to around $523/t.

However, prices in Alang are more likely to stay firm with 2022 nearing, despite the volatility in steel plate prices.

Deals

• A tanker, Umnenga 1 of 18,009 LDT concluded at $578/LDT.
• A ropax, Mahabbah of 7,175 LDT concluded at $525/LDT.
• A ropax, Masarrah of 5,883 LDT concluded at $525/LDT.
• A reefer, Feng 95 of 2,216 LDT was beached at the port.
• A supply vessel, Inter G (under tow) of 1,179 LDT arrived.
• An oil tanker, Karen Knutsen of 25,865 LDT also arrived.
• A jack up, LPH (under tow) of 16,399 LDT arrived.
• A tug, River R of 435 LDT also arrived.
• Total tonnage at Alang Port last week amounted to 59,660 LDT, up by 2% w-o-w.

Bangladesh actively booking units

A large LDT FSU is reportedly under negotiation for resale into Pakistan and Bangladesh, especially as activities improved in these markets.

While Pakistani buyers are all set to compete and secure geographically positioned units, Bangladeshi buyers may not be able to secure all the units as we move towards the year-end.

Deals

• An FSU, Em Longevity of 46,657 LDT concluded at $625/LDT.
• A reefer, Sedna of 3,211 LDT was beached at the port.
• A tanker, Sein Sun of 1,048 LDT was also beached.
• A general cargo, Harin Navee 8 of 780 LDT arrived.
• Total tonnage reported last week at Chattogram Port was 8,053 LDT, down by 84% w-o-w.

Pakistan market remains firm

The ship recycling market in Pakistan remained impacted by the currency depreciations seen in the recent weeks. However, the currency and the market are reported to have stablised last week, and buyers there are more likely ready to compete on available tonnages.

However, Bangladeshi buyers are currently quoting higher in terms of prices as compared to Pakistani recyclers. Despite this, Gadani buyers may get some advantage if they manage to secure geographically positioned units.

Deals

• A tug, Intersea of 1,503 LDT arrived at the port.
• A tug, Intersurf of 1,230 LDT was beached at the port.
• Total tonnage at Gadani Port last week was reported at 71,611 LDT, down by 20% w-o-w.

Outlook

Overall, it is expected that the sub-continental markets (Bangladesh, India and Pakistan) will remain stable with steel prices firming up towards the year-end.

Prices as on 26th Oct’21

Prices in $/LDT
Source- SteelMint Research