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

Ship recycling prices in the sub-continent saw an uptick of $10/light displacement tonnage (LDT) last week. The markets continued their upward trajectory as local steel plate prices regained momentum.

Bangladesh

Recycling yards in Bangladesh clocked sales at around $600 per LDT with several ships arriving at Chattogram Port last week. Tonnage supply was heard to be tight. As per reports, such record high price levels were last seen in 2008, when these had  touched $800/LDT. The rising tonnage prices may push ship owners to carry out their aging units for recycling.

• A very large crude carrier (VLCC), Daring, of 40,970 LDT was beached at Chattogram.
• A liquefied petroleum gas (LPG) tanker, Mediterranean Energy (under tow), of 32,001 LDT arrived at Chattogram.
• A tanker, Zhong, of 5,980 LDT was also beached at the port.
• Total tonnage reported last week at Chattogram Port was 136,627 LDT, up by 113% w-o-w.

India

A consecutive rise in steel prices for the past few weeks left Alang buyers in a firm position and even more eager to acquire some more specialist units currently on offer. According to sources, many offshore and  passenger vessels, reefers and stainless-steel tankers reached Alang yards amid a surprising lack of Hong Kong Convention compliant green vessels.

• Two oil tankers, Isla (5,993 LDT) and Nero (5,985 LDT), were beached at Alang Port.
• Bala, a roll-on, roll-off (RoRo) vessel, of 12,073 LDT was also beached at the port.
• A tug, Dona Paula II (391 LDT), arrived at Alang Port.
• Total tonnage at Alang Port last week amounted to 24,442 LDT, down by 30% w-o-w.

Pakistan

Gadani recyclers will certainly have to rethink its strategy, if it wants to secure tonnage in the coming months. According to sources, with new regulations on tankers implemented recently, ship owners are obligated to make sure their vessels are cleaned properly and thoroughly for hot works, before arriving at any sub-continent recycling destination.

• An ore carrier, Berge Stahl (41,569 LDT), was beached at Gadani Port.
• Two tankers, Elka Aristotle (17,000 LDT) and MR Nautilus (10,650 LDT), arrived at Gadani Port.
• Total tonnage at Gadani Port last week was reported at 87,608 LDT, down by 31% w-o-w.

Prices as on 19th Jul’21

Prices in $/LDT
Source- SteelMint Research