Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Shipbreaking tonnages to India and Pakistan rise by 98pc and 44pc in April, respectively, from March, while Bangladesh continues to leads the subcontinental market with deals of 160,896ldt, according to GMS data.


India’s shipbreaking tonnage rose to 90,810ldt in April, up from the low base of 9,840ldt in the prior year and up by 98pc from March amid strong finished steel demand and prices. Diversion of industrial oxygen for medical use has halted most shipbreaking activities in Alang resulting in a shortage of melting scrap and hike in offers. 


Pakistan’s intake rose to 134,091ldt, up by 44pc from March, while Bangladesh’s tonnage fell by 36pc to 160,896ldt amid slow steel demand due to Ramadan lull. Shipbreaking activities have slowed in Pakistan as well as Bangladesh due to rising COVID-19 cases and lockdowns to curb the spread of the virus ahead of Ramadan holidays.   


Recyclers in Bangladesh yet gain topped shipbreaking volumes in the subcontinent with 16 ships reaching Chittagong in April, while 12 and 6 ships beached at Gadani and Alang port, respectively. 


Despite high restrictions and high incidence of COVID-19 infection, sales continued in the all markets and customs operations such as boarding and beaching of vessel remain open.


Last week’s trades

Buyers in Chattogram bought select tonnage at above $500/ldt, Pakistani buyer could challenge Bangladeshi dominance in the coming days, if prices continue to remain firm. 


In India, trading continued for specialist and HKC vessel amid strong domestic steel prices. A stainless steel tanker FALCON (6,694ldt) owned by Glory of Singapore sold at a high of $750/ldt. The ship has 1,100mt solid stainless steel on board.  


In the Turkish market, higher steel plate prices boosted vessel prices by around $10/mt. Market remained activity despite a lockdown until May 17 and vessels that arrived at Aliaga last week are being delivered to local recyclers.

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