South Asia: Ship recycling prices remain stable

Ship recycling prices remained stable last week in India, Bangladesh and Pakistan.

Incidentally, Indian prices of steel plates, a product used heavily in shipbuilding, have fallen more than in Bangladesh. Sources reported that several cash buyers were rolling back their offers on certain Indian units. However, despite this trend, the ship recycling market is expected to remain firm for the second half of the year.

India

Over the last couple of weeks, local steel prices started to fluctuate, and even declined by about $11/light displacement tonnage (LDT) last week. This has certainly impacted local sentiments. But still a sense of positivity is expected to emerge in the last quarter of the year, thanks to the optimism in the futures market.

The Indian rupee (INR) remains positioned at a stable level of 74 to US dollar.

• Two containers, Dole California of (8,448 LDT) and Dole Ecuador of (8,641 LDT), arrived at the port.
• A chemical tanker, Jean (3,226 LDT), was beached too.
• A chemical tanker, Stolt Seljie (11,219 LDT), also arrived.
• Total tonnage at Alang Port last week amounted to 39,221 LDT, up by 273% w-o-w.

Bangladesh

The Bangladeshi market is more likely to be cautious, because a fall in local steel prices last week has affected local sentiments. Meanwhile, Chattogram buyers still remains confident that a major drop in prices is not likely to happen in the second half of the year.

• An LPG, STANDORF (10,875 LDT), was concluded at $700/LT.
• A General Cargo, Andrey Artemenko of 3,016 LDT, was beached at Chattogram Port.
• Four tankers, Moon Spring of 2,765 LDT, Oceania of 16,099 LDT, Risa of 9,820 LDT and Shun Sheng of 6,287 LDT, also arrived at this port.
• A tanker, Jetstar, of 2,950 LDT, beached.
• An LPG, Saehan Capella, of 2,100 LDT, was beached too.
• Total tonnage reported last week at Chattogram Port was 106,292 LDT, up by 24% w-o-w.

Pakistan

Pakistan had been missing out on geographically-positioned vessels. Gadani buyers remained hesitant in having to buy vessels over the $600/LDT mark, with many finding these prices too high. According to sources, it would be hard to comment whether most of the local buyers would wait and watch the market or take advantage of the situation and secure some deals at slightly marginal numbers.

• A tanker, PIRAMERD (9,227 LDT), was concluded at $605/LT.
• A tanker, Damas, measuring 9,709 LDT, was beached.
• A bulk carrier, Nabiha 1 of 4,903 LDT, was also beached.
• A barge, Shishi of 1,728 LDT, was also beached.
• Total tonnage at Gadani Port last week was reported at 18,485 LDT, up by 53% w-o-w.

Prices as on 24th Aug’21

Prices in $/LDT
Source- SteelMint Research