South Asia: Shipbreaking prices unchanged amidst supply shortage of tonnage

Ship recycling prices in India, Bangladesh and Pakistan remained firm last week. However, with a decrease in steel plate prices in Bangladesh, local shipbreaking offers fell to the $600/LDT-mark amidst supply shortage of tonnage.

India

The Indian shipbreaking market slowed down this week due to a delay in supply of tonnage. The weak dry and container market and falling ship recycling prices in the competetive sub-continental market, with Pakistan and Bangladesh in the fray,  kept Indian buyers away from concluding active deals. Overall, it is a challenging time trying to get units committed into India.

• A tanker named Hellas of 13,213 light displacement tonnage (LDT) arrived at the Alang port.
• A reefer called Thorn 1 of 7,868 LDT was beached at Alang.
• Total tonnage at Alang Port last week amounted to 67,504 LDT, unchanged w-o-w.

Bangladesh

There had been a slight decrease in shipbreaking prices in the Bangladesh market following a correction in steel prices. Nevertheless, prices remained largely stable in the first week of Sept’21 with plenty of tonnage accumulated in the yards as hungry recyclers booked actively amidst the recent slowdown in supply.

As a result, no sales were concluded from Bangladesh this week.

• Two tankers, Catur Samudra (2,254 LDT) and Singapura (17,708 LDT), arrived at Chattogram Port.
• Two reefers, PK Marine 3 of 1,281 LDT, and PK Marine 4 of 1,748 LDT, also arrived at Chattogram.
• Total tonnage reported last week at Chattogram Port was 28,244 LDT, down by 70% w-o-w.

Pakistan

In the absence of Bangladeshi buyers in the recycling market in the last few months, Pakistani recyclers became active in booking units (including several VLCCs and VLOCs).

Overall, there is an optimism as we move towards the final quarter of the year that more deals at decent prices will be concluded for Pakistan as local demand is ramping up again.

• A bulk carrier, AMAL I of 7,301 LDT was concluded at $585/LT.
• Two tankers, Piramerd of 9,375 LDT and Chiron of 9,041 LDT were beached at the Gadani Port.
• A tanker, Pheonix III of 2,120 LDT arrived at the port.
• A general cargo, Nordon of 1,470 LDT, also arrived at the port.
• Total tonnage at Gadani Port last week was reported at 22,937 LDT, up by 19% w-o-w.

Prices as on 6th Sep’21

Prices in $/LDT
Source- SteelMint Research