South Asia: Ship-breaking offers stable w-o-w; but no fresh deals struck

South Asian recycling markets continued to perform surprisingly well last week. Pakistan led the way with some of the best numbers of unit (vessels) deals. Bangladesh was also not far behind its counterparts. India, however, was slow with few vessels. Overall, ship-breaking prices in these markets remained stable w-o-w. However, no deals were concluded last week.

India

In India, several small light displacement tonnage (LDT) vessels were beached in Alang lately. There are signs that Alang buyers will likely be more competitive over these monsoon months, with lockdowns beginning to ease in some states.

Meanwhile, the Indian rupee continues to trade firmly at 74 against a US dollar, leaving India well-positioned. Furthermore, Covid-19 cases are finally decreasing in the country.

• A supply vessel, T 20 (2,506 LDT), arrived at Alang Port.
• A barge, namely DB Al Ashoosh (under tow, 2,150 LDT), was beached at Alang Port.
• A liquefied natural gas (LNG) vessel called Katara, of 2,538 LDT, arrived at the port.
• The total tonnage at Alang Port last week amounted to 11,916 LDT, down by 80% w-o-w.

Bangladesh

Unsurprisingly, no new sales happened last week in Bangladesh. Few vessels were being diverted to Pakistan due to increasing accumulation of tonnage in local yards, that were beached in Chattogram over the first six months of the year. Perhaps, this could be the reason for reduced demand in the local market, even as local steel plate prices showed signs of volatility.

• A cement carrier, Tabernacle Prince of 5,360 LDT, arrived at Chattogram.
• Two tankers, namely Vinson (46,310 LDT) and EM Vitality (48,087 LDT), arrived at the port.
• An LNG carrier, Caribbean Energy (under tow) of 31,143 LDT, was beached at the port.
• The total tonnage reported last week at Chattogram Port was 187,243 LDT, up by 13% w-o-w.

Pakistan

In Pakistan, some interesting purchases were concluded recently by local buyers as steel plate prices firmed up at a dizzying rate over recent weeks.

Meanwhile, after an incident where, a floating storage and offloading (FSO) unit, ( carrying 1,500 tons of hazardous mercury sludge, after being denied permission to dock in Bangladesh), made its way towards Pakistani waters, there have been some increased regulations on tankers, as per reports. It seems, it will now be even more stringent to obtain a ‘gas-free for hot works certificate’ to beach locally.

• A tanker, namely Splendour Emerald (9,696 LDT), was beached at Gadani Port.
• Two tankers, namely New Diamond (38,964 LDT) and Rama 1 (2,661 LDT), arrived at the port.
• Total tonnage at Gadani Port last week was reported at 75,537 LDT, up by a whopping 100% w-o-w.

Prices as on 28th Jun’21

Prices in $/LDT
Source- SteelMint Research