South Asia: India's imported ship-breaking market remains active
The South Asian imported ship-breaking market remained steady, with the Indian market witnessing positive developments while Pakistan and Bangladesh continued to face cha...
The South Asian imported ship-breaking market remained steady, with the Indian market witnessing positive developments while Pakistan and Bangladesh continued to face challenges. The annual Tradewinds Ship Recycling Conference in Singapore brought together stakeholders to discuss market sentiments, fundamentals, and evolving regulations. There was debate about the potentially conflicting EU vs. HKC recycling regulations and their varying requirements. Turkiye's market remained unchanged.
As the year draws to an end, the market expects a typical flow of feeder containers and dry bulk vessels. Recycling levels remained firm in the low to mid-500s per light displacement ton (LDT). Although recycling tonnage volumes remained somewhat muted, the industry anticipates increased supply heading into 2024.
India
Indian market continued to remain firm in terms of prices and demand. However, market participants expect a slowdown in trade activity in the upcoming weeks due to the festive season. According to sources, a recent deal was concluded for India, MSC LEVINA (12,857 LDT) fetched $ 565/LDT, which includes 400 t of bunkers. Furthermore, several additional trades have been reported from market sources. A general cargo vessel with 3,200 LDT was reportedly concluded at levels between $520 and $525/LDT. However, it is important to note that these trades are yet to be confirmed.
Total tonnage received at Alang last week was 52,264 LDT.
Bangladesh
There were signs of improvement in Bangladesh's ship recycling market this week, raising hopes for a better end to 2023 for Chattogram recyclers. Despite unfavourable local factors, such as stagnant steel plate trading, the Bangladeshi taka fluctuating around BDT 110 against the U.S. dollar, local buyers seem more willing to engage with serious offers.
As a result, a Suezmax tanker, the ALANA (22,471 LDT), was sold at an exceptional price of USD 570/LDT, including gas-free for hot works clean upon arrival.
Presently, the tonnage at the Chattogram port has fallen below the levels in Pakistan and India, reaching the lowest position. Average prices for containers and tankers have experienced slight improvement and moved to the second position after India.
Total tonnage received at Chattogram last week was 6,571 LDT.
Pakistan
Gadani recyclers have been less active, adopting a wait-and-watch approach until the local currency and steel plate prices stabilise, and improvements in LC approvals occur. This implies a quieter Q4 for the Pakistani market, despite a recent surge in Panamax bulker sales into Gadani, which brought the market back into focus after nearly a year on the sidelines.
A recent unconfirmed deal involved a tanker vessel with a tonnage of 16,000 LDT, reportedly sold at prices ranging from $450-$460/LDT. The prices in Pakistan remained at the lower end due to currency-related challenges and lack of demand.
Total tonnage received at Gadani last week was 9,743 LDT.