India’s shipbreaking tonnage fell to 91,221ldt in February, down by 49pc from the prior year and down by 59pc from January amid volatile finished steel prices. Compared to January, Bangladesh’s tonnage rose by 68pc to 352,302ldt on stable demand from mills restocking scrap but fell by 21pc from a year ago. Pakistan’s intake also fell by 71pc to 22192ldt from January on weak steel demand, according to GMS data. Pakistan’s tonnage is up by 10pc from a year ago against a low base in the prior year as Gadani port was then barred from recycling ships.
Recyclers in Bangladesh topped shipbreaking volumes in the subcontinent with 26 ships reaching Chittagong in February, while 12 and 6 ships beached at Alang and Gadani port, respectively. Higher iron ore prices and improved steel demand in China encouraged Bangladesh ship recyclers to increase vessel bookings, while lower steel demand and subdued steel prices held back Indian and Pakistani buyers.
Last week, recyclers in Gadani competed fiercely with Bangladeshi buyers. Shipyards in Chittagong remained keen to secured deals from the Far East. India buyers lacked interest and could fall short of tonnages if arrivals of HKC vessels slow down.