South Asia: Imported ship-breaking market volatile w-o-w

South Asia's ship-breaking market recorded several sales last week. This development took place as sub-continent ship recycling markets roared back. On top of that a previously subdued Bangladesh appeared to be regaining some form, as per GMS report.

Demand appeared to have increased in the past week in both Pakistan and Bangladesh. These nations were unable to import vessels for the majority of this year, and it is encouraging to see several deals being concluded recently.

India is still looking for tonnage, but it fell behind a resurgent Bangladesh last week. At this juncture, both these countries will have to step up their game if they want to secure any available vessels.

Turkey recorded a small drop in import steel prices, while levels for ships remained stable for the past month, with no news of any market fixtures forthcoming.

India concludes deal

India, the second-largest subcontinent market, continued to gain material as a result of feasible Letter of Credits (L/Cs) and a more reliable performance from local recyclers. Rising flow of vessels bound for Hong Kong Convention's (HKC's) green recycling also worked in favour of India.

India had concluded two deals last week, the LNG carrier SEAPEK ARCTIC (23,667 LDT), Malaysia was sold for a massive $15 million for select yards and strictly HKC recycling only. Another container was also committed, the OEL SHRAVAN (7,281 LDT) of Colombo, fetched a reasonable $587/LT LDT.

On the domestic front, the INR is still trading in the low-to-mid 82.77 range as of the first half on 21 February compared to the previous week, which was around INR 82.75 against the USD.

The total tonnage at Alang Port last week was 59,258 LDT.

Bangladesh resurgent

Bangladesh has enjoyed a stunning resurgence, finishing top in the price rankings this week after securing some hugely priced sales after a long wait.

The most significant transaction of the previous week involved the Sinokor-controlled container XIUMEI SHANGHAI (7,276 LDT), that was fixed at an astounding $640/LT LDT. Regardless of the inclusion of a decent-sized propeller, bow thruster, and approximately 300 tonne of bunkers in the sale.

The Panamax bulker VADI (10,085 LDT) had also been finalised from Turkish owners for a reasonable $575/LDT, with approximately 300 tonne of bunkers and a spare propeller contributing to the firmer prices.

Bangladeshi Taka remained largely stable from BDT 106.75 in the previous week to BDT 106.24 against the USD during the first half of the trading session.

The total tonnage reported last week at Chattogram Port was 89,364 LDT.

Pakistan's persistent L/C issues

In contrast, Pakistan was only able to watch enviously as competing markets surged past, acquiring some reasonable tonnage at firming rates last week. In the country, the main issue has been unworkable L/Cs for import vessels for recycling.

The Pakistani currency appreciated further to PKR 260.52 during the trading session on February 21 from PKR 267.50 in the previous week against the USD.

The total tonnage at Gadani Port last week was nil.

Prices in $/LDT
Source: SteelMint Research