South Asia: Ship-breaking import prices in India fall $10/LDT amidst no major deals

The Indian recycling market witnessed a decline in ship-breaking prices by $10/LDT this week with no market sales reported.

Meanwhile, the Omicron variant of Covid-19 is becoming an issue once again, with ports (globally) gradually closing their borders for international travel as well as for crews which are arriving.

However, both Bangladesh and Pakistan continue to remain firm.

India lowest placed

India remains the lowest placed of all the sub-continent markets last week, with very few offers coming from local recyclers.

Meanwhile, the Indian rupee is currently trading at INR 75 against the US dollar.

Deals

• An oil tanker, Banyan Pride, of 9,495 LDT, arrived at the port.
• A supply vessel, Siren of 2,522 LDT, was beached at the port.
• A fishing vessel, Video, of 554 LDT, also arrived.
• An oil tanker, Zara 17, of 1,180 LDT, was also beached.
• Total tonnage at Alang Port last week amounted to 28,105 LDT, down by 54% w-o-w.

Bangladesh out of action

Bangladeshi buyers once again remained quiet last week, continuing to wait and watch market developments.

Recyclers are also choosing to observe the direction of the markets rather than offering units right away.

Therefore, a very limited number of vessels are available for recycling.

Deals

• Two tankers, Chang Li, of 2,771 LDT, and Yuan Sheng, of 1,880 LDT, arrived at the port.
• A FSO, Jubilant, of 42,760 LDT, arrived.
• A tanker, Ostrov Eusskiy, of 2,397 LDT, was beached at the port.
• Total tonnage reported last week at Chattogram Port was 124,886 LDT, up by 25% w-o-w.

Pakistan facing currency concerns

Pakistan is struggling with its currency depreciation (against the US dollar) over the last month, with another 1.5% drop in the Pakistani Rupee since 20 Nov’21.

This has made Gadani recyclers worried once again, resulting in missing out on units to a far better-placed Chattogram.

Deals

• A passenger ship, Antares Experience, of 24,541 LDT, was beached at the port.
• A barge, Astro Sunrise, of 2,143 LDT, of 2,143 LDT, was also beached.
• A tanker, Juli, 1,988 LDT, also arrived.
• A RoRo, Masarrah, of 5,583 LDT, arrived.
• A tanker, Vagabon, of 3,024 LDT, also arrived.
• Total tonnage at Gadani Port last week was reported at 42,333 LDT, up by 40% w-o-w.

What may happen?

Taking all the above market sentiments into consideration, it is more likely to be a quieter end to the year.

Prices in $/LDT
Source- SteelMint Research