South Asia’s ship-breaking market reflected positive trends in recent weeks, as prices moved up by $10/t, particularly in India and Bangladesh, as per a recent GMS report.
During the week, Bangladesh was the prime market-mover, with prices moving higher, and demand rising gradually which contrasts with a gloomy Pakistan market where L/C clearances are suffering far more than in Bangladesh.
While the Bangladesh market is beginning to lighten up on L/Cs for select buyers, with private banking means for financing new vessels and at the far end the Turkish market was dormant for a week.
India’s prices increase
For yet another week, India’s Alang, one of the largest ship-breaking recycling facilities in the world, witnessed a successive hike of $10/LDT following the strong Bangladesh market.
On the domestic front, the INR hovers at the 81.77-81.81 range and has remained largely stable compared to the previous week – around INR 81.71 against the USD.
The total tonnage at Alang Port last week was 19,460 LDT.
Bangladesh’s stunning recovery
Bangladesh continues to dominate the news for yet another week, thanks to some eye-popping huge LDT transactions that helped to dispel the gloom that had gripped this market for most of last year.
Two deals were concluded for Bangladesh last week, the Sinokor-controlled LNG ADRIATIC ENERGY (32,204 LDT) for $22 million and a capesize bulker AGIA TRIAS (22,132 LDT) was fixed from Greek Owners at a reasonable USD 578/LDT basis an ‘as is’ Singapore delivery with enough bunkers for the voyage.
The Bangladeshi Taka fluctuated w-o-w as BDT 106.97 in the previous week and BDT 104.89 against USD during the first half of the trading session.
The total tonnage reported last week at Chattogram Port was 39,382 LDT.
Pakistan inactive due to L/C issue
Pakistan is once again miles away from the low-cost Indian market and way behind the soaring Bangladeshi market as well.
Overall, Gadani Buyers are still battling to obtain the necessary L/C clearances to import vessels, and have yet again had performance concerns on numerous deliveries when things did not go properly.
The Pakistani currency went down slightly to PKR 277.13 during the trading session on 7 March from PKR 276.01 in the previous week.
The total tonnage at Gadani Port last week was zero.
Prices in $/LDT
Source: SteelMint Research
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