South Asia: Ship-breaking prices stable, few deals reported

Ship recycling prices in India, Bangladesh and Pakistan remained unchanged w-o-w. Meanwhile, steel plate prices in India and Bangladesh witnessed a drop last week as local sentiments started softening over expectations of further decline.

However, potential supply concerns and resumption of construction projects across markets post-monsoon could stabilise ship-breaking prices in the near term.

Bangladesh

Ship-breaking prices in Bangladesh’s Chattogram saw a drop last week as local steel plate prices declined by over $16/tonne (t). Yet, some participants in the local market believe that demand for steel within the country will remain active throughout the year, as it recovers from the devastating Covid-19 pandemic. With a lot of construction projects underway, steel prices may not be rolled back too much and levels are expected to stay around the $600/light displacement tonnage (LDT) levels, going into the fourth quarter.

• A tanker, Sanmar Stanza, of 9,364 LDT, was concluded at $580/LDT on ‘as is’ Colombo basis.
• A chemical tanker, New Horizon, of 2,944 LDT, was also concluded at $598/LDT.
• An LPG tanker called Gas Icon, of 2,926 LDT, and a reefer named Kapitan Stekokshchikov (2,686 LDT), arrived at the port.
• Two general cargo, Island 10, of 2,686 LDT, and Pacific 10 (Under Tow), of 2,722 LDT, arrived.
• A tanker, Singapura (17,708 LDT), and an LNG tanker, Terif (under tow), of 26,915 LDT, were beached.
• Total tonnage reported last week at Chattogram Port was 65,804 LDT, up by 133% w-o-w.

India

Just like Bangladesh, the Indian market also registered a drop in local steel plate prices by around $20/t by mid-week, but managed to regain by $6/t at the end of last week. This left local recyclers very cautious, especially given the volatility in the Indian market in recent weeks.

• An oil tanker, Sallie Knutsen, of 25,553 LDT, was beached at the port.
• An LPG, Standorf (11,050 LDT), was also beached.
• Total tonnage at Alang Port last week amounted to 76,944 LDT, up by 14% w-o-w.

Pakistan

Despite firm local steel plate prices, the Pakistani market followed the sub-continent leaders (Bangladesh and India) for the most part of this year. As a result, with no geographically positioned tonnage on offer, only one HKC unit was booked last week. Pakistani recyclers wrapped up last week with no market sales again.

The recently imposed tanker regulations have made Gadani recyclers cautious, keeping the ship-breaking market stable.

• A tanker, Splendour, of 10,045 LDT, arrived at Gadani Port.
• A tanker, Pheonix III, of 2,120 LDT, was also beached.
• Total tonnage at Gadani Port last week was reported at 13,635 LDT, down by 41% w-o-w.

Prices as on 15th Sep’21

Prices in $/LDT
Source- SteelMint Research