South Asia: Imported ship-breaking offers rally on rising global steel prices

Imported ship-breaking prices in the Asian markets saw an uptick of $10-30/light displacement tonnage (LT) week-on-week (w-o-w) on the back of rising global steel prices and a steady stream of vessels getting sold before the Eid holidays at higher levels.

Bangladesh

Bangladesh's buyers remained on the sidelines in the ship recycling market last week due to the Eid holidays. As a result, buying inquiries remained low. As per sources, vessels are stacking up at the ports as most of the (geographically positioned) units sold in the past few months have ended up in the hands of Bangladeshi recyclers.

• One bulk carrier, called Shanghai, of 21,807 light displacement tonnage (LDT) arrived at Chattogram Port.
  
  
• Two tankers, Aek Kanopan 88 (2,650 LDT) & Fateyevo (1,227 LDT) were also beached at Chattogram Port.
  
  
• The total tonnage reported last week at Chattogram Port was at 88,585 LDT (Up by 106% w-o-w).
  
  

India

Covid-19 continues to cast a long shadow over India, with daily infections and deaths exceeding 400,000 and 4,000 per day, respectively. Consequently, ship deliveries are scarce and owners willing to bring their vessels to Alang are charging a premium. As per sources, prices remained firm unlike the pandemic last year with steel plate prices touching new highs, as demand for recycled material rises. Also, the Indian rupee started firming up this week, hitting close to 73 against the U.S. dollar.

• One drill ship, Key Hawaii (under tow) (1,520 LDT) arrived at Alang.
  
  
• Two OSVs, Achieve (1,520 LDT) and Sea Fos (2,009 LDT) arrived at Alang.
  
  
• One oil tanker, Sea Lion (5,222 LDT), and a bulker, Texas Enterprise (7,646 LDT) were beached at Alang.
  
  
• The total tonnage at Alang Port last week was 85,293 LDT (Up by 100% w-o-w).
  
  

Pakistan

Pakistan is back again in the recycling market competing with its Bangladeshi counterparts for the best and largest LDT units available. As per sources, several sales in recent weeks at decent numbers (in and out of Bangladesh) seem to have reinvigorated recycling activity at Gadani Port. With the Eid holidays, things had certainly slowed down last week but are likely to pick up after the break on positive fundamentals and rising demand.

• A general cargo, Abi, arrived at Gadani Port (2,100 LDT).
  
  
• A tanker, Victoriya (9,500 LDT), and a barge, Michelan 285 (1,600 LDT), were beached at the port.
  
  
• A RoPax Birden ship (4,337 LDT) was beached at the port.
  
  
• Total tonnage at Gadani Port last week was reported at 20,334 LDT (Down by 59% w-o-w).
  
  

Prices as on 17th May'21

Prices in $/LT
Source- SteelMint Research