South Asia: Ship-breaking prices flat w-o-w, no fresh deals reported

The sub-continent markets (Bangladesh, India and Pakistan) have seen ship-breaking prices remaining the same w-o-w, at around the $600/LDT.

Meanwhile, steel plate prices remained volatile but depreciated across the sub-continent markets.

India trying to secure units

India being the lowest placed among the three South Asian countries, Alang buyers have somehow managed to pick up their share of green units as both neighbouring countries continue to dominate.

Unfortunately, the lower supply of tonnage is showing further signs of weakness. And an increasing unwillingness from end-buyers to compete on tonnage in a market that is experiencing such volatility in steel plate prices.

As a result, no sales were reported last week for India.

Deals

• A tanker, Elegant, of 3,292 LDT, arrived at the port.
  
  
• Total tonnage at Alang Port last week amounted to 3,292 LDT, down by 96% w-o-w.
  
  

Bangladesh buyers remain cautious

Despite the ongoing volatility, levels still remain impressive from Bangladesh as owners are still being greeted with levels above $600/LDT.

Yet, some Bangladeshi buyers were cautious in their offerings last week. Overall, it has remained a relatively quiet week in Chattogram as the shortage of tonnage continues.

There were no sales from Bangladesh to report on from last week.

Deals

• A drill ship, NS Cassino, of 12,331 LDT, arrived at the port.
  
  
• Two tankers, Jay Jay (1,403 LDT), and Eustance, of 1,090 LDT, also arrived.
  
  
• Two tugs, Thor, of 682 LDT, and Ocean Royal (Under Tow), of 427 LDT, arrived.
  
  
• Total tonnage reported last week at Chattogram Port was 32,956 LDT, down by 50% w-o-w.
  
  

Pakistan's Gadani recyclers aggressive

There were several large LDT VLCC units in the market last week for buyers in Bangladesh and Pakistan who prefer larger vessels. However, given the price difference and geographic location of these vessels, Pakistan buyers were unable to acquire any fresh tonnage.

Yet, a few Gadani recyclers were aggressive and tried to compete and secure units. But they might have to pay a premium if the units are located in the Far East.

Deals

• A tanker, Hafid, of 9,246 LDT, was beached at Gadani Port.
  
  
• An FPSO, Laya, of 15,363 LDT, arrived.
  
  
• A bulk carrier, Amal 1, of 7,418 LDT, also arrived at the port.
  
  
• Total tonnage at Gadani Port last week was reported at 43,542 LDT, up by 219% w-o-w.
  
  

Outlook

As we move closer towards the fourth quarter (Q4) along with a volatile movement in steel plate prices, sources believe that the market might see a collapse in ship-breaking prices.

Prices as on 21st Sep'21

Prices in $/LDT
Source- SteelMint Research