South Asian ship-breaking prices remained stable week-on-week (w-o-w) as most of the participants were hesitant in the sub-continent markets. Longer summer months and a traditionally slower monsoon have kept steel prices firm this month (May’21).
Bangladesh
The recycling market in Bangladesh remained buoyant with the arrival of several ships, with some still on the way. Those which arrived were largely from the bustling tanker sector, as buyers were seen eager to fill their plots with tonnage.
- A large floating storage unit (FSU) was concluded at a higher price . The Nathalin-controlled tanker, Energy Star, of 42,686 light displacement tonnage (LDT), managed to fetch $530/LDT an ‘as is’ Malaysia or Singapore range delivery, both locations which are now under significant restrictions in terms of crew changes.
- A livestock carrier, Enoz, of 10,600 LDT was beached at Chattogram Port.
- Two tankers, namely Alsafal (16,694 LDT) and Ontari (4,828 LDT), were also beached at the port.
- The total tonnage reported last week at Chattogram Port was 123,178 LDT, up by 160% w-o-w.
India
Despite several specialist/offshore and non-ferrous units t coming in for recycling, the Indian market was relatively quiet last week as the recyclers fell behind their Pakistan’s and Bangladesh’s counterparts. As per sources, most of the Alang yards are closed at present as the country is still battling Covid-19. Lack of oxygen availability is leading to a backlog of vessels beached/due for beaching at domestic plots before any cutting can even begin.
- A mobile offshore drilling unit (MODU),, Trident 15 (under tow), of 8,202 LDT, was beached at Alang Port.
- One reefer, namely China Frost (3,431 LDT), arrived at Alang Port.
- A chemical tanker, Mega (2,369 LDT), and another one, ,namely Dawn (under tow) of 3,197 LDT arrived at Alang .
- The total tonnage at Alang Port last week amounted to 24,285 LDT, down 75% w-o-w.
Pakistan
Pakistan’s buyers seemed to be somewhat jittery last week, as ship-breaking prices in India fell following a decline in global prices by about $20-25/LDT. These buyers are reluctant to purchase as they are expecting India’s prices to fall further, as per sources. However, this more likely depends on whether China prefers to import steel from India at higher rates. Gadani Port has lately become rather active in the recycling market, catching up Bangladesh in terms of available tonnage . One can only hope this will continue till the summer ends.
- A general cargo, namely Captain Hamada (3,318 LDT), arrived at Gadani Port.
- A cattle carrier unit, Al Baraka 5 (7,000 LDT), and a tanker, namely Nolla (1,828 LDT), also arrived at Gadani Port.
- Total tonnage at Gadani Port last week was reported at 68,439 LDT, up by 131% w-o-w.
Prices as on 31st May’21
Prices in $/LDT
Source- SteelMint Research
Leave a Reply