South Asia: Ship-breaking import prices up $15-20/LDT, activity from India increases

Ship-breaking import prices in Bangladesh, India and Pakistan rose by $15-$20/light displacement tonnage (LDT), w-o-w.

The sub-continent markets saw active trading, particularly Bangladesh and India (who now seem to be competing even more on tonnage), while Pakistan missed out on units once again.

India buyers actively book deals

The Indian market was buoyant last week too. End-buyers bid aggressively to secure tonnage as there were very few vessels available in the recycling market while the interest in the domestic and exports market was strong.

Deals

Total tonnage at Alang Port last week amounted to 45,959 LDT, up by 74% w-o-w.

Bangladesh leads the subcontinental market

Bangladesh again emerged as the leading recycling market for yet another week but missed out on vessels to competing markets. Surprisingly, this week, Bangladesh lost a favoured large LDT Cape for HKC recycling to India.

Deals

Total tonnage reported last week at Chattogram Port was 111,311 LDT, up by 158% w-o-w.

Pakistan misses out on vessels

Pakistan started regaining momentum last week. However, it missed out on some vessels as bids from the other competitive markets were far better compared to those by Gadani recyclers.

Deals

Total tonnage at Gadani Port last week was reported at 65,386 LDT, up by 9% w-o-w.

Prices in $/LDT
Source- SteelMint Research

Outlook

Overall, ship breaking import prices are most likely to remain elevated as the sector is currently experiencing a shortage of units.