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

The sub-continent’s ship recycling markets saw an uptick of $10/light displacement tonnage (LDT) last week. A slowdown in supply of ships resulted in some overly aggressive offerings from end-buyers.

India

Indian steel prices fell by at least $18/tonne (t), as the currency depreciated to the  74.80-mark last week. According to sources, a drop of about 2.5% in the Indian rupee (INR) in the past couple of weeks led to a decline in local steel prices by about 4% w-o-w. Currently, the INR continues to trade firmly at 74.50 against the US dollar.

• A chemical tanker, Gem (3,050 LDT), arrived at Alang Port.
• A passenger vessel, namely Leisure (9,630 LDT), was beached at Alang Port.
• A reefer, Dole Costa Rica of 8,554 LDT, was beached at the port.
• Total tonnage at Alang Port last week amounted to 45,509 LDT, rising by 282% w-o-w.

Bangladesh

Despite the strict government lockdown extended for yet another week, few high-priced deals were concluded in Chattogram from existing cash buyers. According to sources, essential port operations like vessel arrivals are expected to continue during this period.

Vessels from the Far East were sold to Gadani buyers in Pakistan, due to the slightly higher market rates there.

• A reefer, Hua Jian 107 of 2,665 LDT, arrived at Chattogram.
• Two tankers, namely Prestig (1,561 LDT) and Tri Wings (2,771 LDT), were beached at the port.
• A bulk carrier, KT 02 of 7,456 LDT, was beached at the port.
• Total tonnage reported last week at Chattogram Port was 132,215 LDT, down by 29% w-o-w.

Pakistan

Pakistan continued to lead the sub-continental recycling market last week too. According to sources, at present, there are some new tanker regulations in force at Pakistan’s Gadani Port. Despite this, the market hopes that buyers will remain active in booking tonnages.

• An ore carrier, namely Berge Stahl (41,569 LDT), arrived at Gadani Port.
• Two tankers, namely Elka Angelique (10,176 LDT) and New Diamond (38,964 LDT), arrived at Gadani Port.
• Total tonnage at Gadani Port last week was reported at 111,051 LDT, up by 47% w-o-w.

Prices as on 5th Jul’21

Prices in $/LDT
Source- SteelMint Research