South Asia: Imported ship-breaking offers up $10/t w-o-w

Ship recycling prices saw an uptick of $10/light displacement tonnage (LDT) last week in Bangladesh and India. However, Pakistan faced a frustrating week after losing several deals.

Bangladesh

Bangladesh continued to lead the sub-continental recycling market despite the Eid holidays last week. The lockdowns have started to ease across the country, and a number of deals had been concluded by Bangladeshi recyclers at over $600/LDT.

The competing markets, Pakistan and India were a bit behind the market leader.

• A general cargo, Harin Transport 17 of 798 LDT, arrived at Chattogram.
• A liquefied petroleum gas (LPG) tanker, Mediterranean Energy (under tow) of 32,001 LDT, was beached at Chattogram.
• A tanker, Orient Well of 5,218 LDT, was also beached at the port.
• Total tonnage reported last week at Chattogram Port was 38,017 LDT, down by 72% w-o-w.

India

Indian steel plate prices have come roaring back, as Alang buyers tried desperately hard to compete against its competitors. According to sources, Alang recyclers managed to secure their share of HKC-compliant green vessels as well as specialist stainless steel units, offshore vessels, reefers and passenger units.

After the depreciation of the Indian  rupee (INR) several weeks ago, it is currently trading at  74 against the US dollar. India is back in the picture and it is more likely to be a positive time for the Indian market.

• Two reefers, Green Klipper (2,495 LDT) and Green Ocean (2,495 LDT), arrived at Alang Port.
• Two chemical tankers, Simba (10,846 LDT) and Theresa Tiga (5,969 LDT), also arrived at the port.
• Total tonnage at Alang Port last week amounted to 22,195 LDT, down by 9% w-o-w.

Pakistan

Last week, Pakistan lost several well-placed vessels intended for the Gadani market, to a prolifically deal-making Chattogram. End buyers took off on account of the Eid holidays last week, hence any available vessels simply went to Bangladesh, despite being a holiday season there at that time.

According to sources, end -buyers have started to get nervous as prices approach $600/LDT, and the fact that India is catching up fast with Pakistan, which should be their main concern at present rather than catching up with Bangladesh, which seems too far ahead.

• A tanker, MR Nautilus (10,650 LDT), arrived at Gadani Port.
• Two barge, Julnar (1,600 LDT) and Yabri (1,800 LDT), were beached at Gadani Port.
• Total tonnage at Gadani Port last week was reported at 87,608 LDT, stable w-o-w.

Prices as on 26th Jul’21

Prices in $/LDT
Source- SteelMint Research