South Asia: Ship-breaking prices flat w-o-w, Indian ship-cutting plate prices up

Ship-breaking prices in the sub-continental markets of (Bangladesh, India and Pakistan) have remained unchanged w-o-w.

Meanwhile, the currency in India and Pakistan have seen volatility since the last couple of weeks. However, ship recycling prices might not decline significantly any time soon.

Indian ship-cutting plate prices rise

Alang’s ship-cutting plate prices rose by $8/tonne (t) w-o-w to around $541/t. However, the Indian rupee, once again depreciated and is at around  75.3 to the dollar.

According to sources, Alang recyclers remain eager for tonnage in the fourth quarter as Indian buyers took the top spot in the sub-continent by taking in the largest number of vessels last week from competitors Bangladesh and Pakistan.

Deals

• Two supply vessels, Tommy, of 1,965 LDT, and Reg (under tow), of 1,969 LDT, arrived at the port.
• A supply vessel, Supreme Explorer, of 3,093 LDT, was beached .
• A fishing vessel, Jupiter, of 1,632 LDT, also arrived.
• A RoRo, Lotus, of 12,112 LDT, was also beached.
• A passenger vessel, Nancowry, of 8,000 LDT, arrived.
• Total tonnage at Alang Port last week amounted to 58,742 LDT, up by 14% w-o-w.

Bangladesh recyclers remain strong

Chattogram’s has been the busiest sub-continental location (for tanker deliveries) over the recent past, despite this market’s recent unsteady performance. According to sources, no sales were reported last week. However, local recyclers are remaining strong.

Deals

• A tanker, Jin Tai, of 2,056 LDT, arrived at the port.
• A fishing vessel, Pandora, of 959 LDT, also arrived.
• Total tonnage reported last week at Chattogram Port was 50,450 LDT, down by 65% w-o-w.

Pakistan still looking to acquire

Despite struggling with the  currency depreciation, Gadani recyclers have been wishing to  compete with sub-continental neighbours (India and Bangladesh) on any available large LDT tankers.

Most of the units are located in the Far East but   delivery cost to a far more aggressive Bangladeshi market are lower. Thus, most of the large LDT tankers have ended up in Chattogram this year.

Deals

• Two tankers, Cape Balder, of 22,666 LDT, and Lucky Dolphin, of 7,486 LDT, arrived at the port.
• A VLCC, Spirit, of 38,726 LDT, also arrived.
• Total tonnage at Gadani Port last week was reported at 89,645 LDT, up by 92% w-o-w.

What may happen?

Overall, it is expected that ship-breaking prices will remain firm towards the year-end.

Prices as on 19th Oct’21

Prices in $/LDT
Source- SteelMint Research