Low demand weigh on imported ship-breaking offers in South Asia

The sub-continental ship breaking market (India, Bangladesh and Pakistan) has witnessed a fall in prices by up to $15/light displacement tonnage (LDT) on a w-o-w  basis. Low demand has been weighing on prices.

Bangladesh remains cautious

With the recent heavy rainfalls and halting of ongoing construction projects, demand  slowed down to a great extent, leading to a dull market sentiment which restricted buyers from making further purchases.

Deals

• A tanker, Ocean Ruby, of 22,029 LDT, was concluded at $620/LDT.
• A VLCC, Em Longevity, of 46,657 LDT, arrived at the port.
• A tanker, Ever Luck, of 3,683 LDT, was beached.
• Two reefers, Marine One, of 1,457 LDT, and Mega Reefer, of 1,445 LDT, was also beached.
• A tanker, Sea Fortune (under tow), of 1,339 LDT, arrived.
• Total tonnage reported last week at Chattogram Port was 177,039 LDT, up by 42% w-o-w.

India market sentiments remain dull

The Alang ship recycling market has been quiet for another week and is lagging behind its neighbouring countries (Bangladesh and Pakistan). The Indian Rupee (INR) is currently trading at INR 75.5 against the dollar.

Deals

• Four tankers, Harriet, of 2,292 LDT, Maple, of 5,409 LDT, Melati Dua, of 10,169 LDT, Raj, of 13,828 LDT, arrived at the port.
• A jack-up, Hero (under tow), of 9,082 LDT, was beached at the port.
• A tanker, Swiftchem, of 4,489 LDT was also beached.
• Total tonnage at Alang Port last week amounted to 60,911 LDT, up by 117% w-o-w.

Pakistan facing currency issues

Demand for finished products is running low as there is a reported slowdown in construction projects. Also, electricity tariffs have increased (thereby increasing cutting costs). Moreover, Pakistan is facing currency issues as it is currently trading at PKR 178.2 against the US dollar. However, it is expected to be a quieter end to the year in Pakistan.

Deals

• An accommodation ship, Atlantic Enterprise, of 4,083 LDT, arrived at the port.
• Three tugs, Lord Gee, of 1,033 LDT, Ocean Sharm, of 1,357 LDT, and Sir Gee, of 770 LDT, were beached.
• Total tonnage at Gadani Port last week was reported at 10,267 LDT, down by 76% w-o-w.

Outlook

Overall, it is more likely to be a quieter end to the year, and keeping the Omicron Covid variant in mind, deliveries might get further delayed due to increased travel restrictions.

Prices in $/LDT
Source- SteelMint Research