Shipbreaking scrap prices fell this week as subdued steel prices, heavy rains and concerns over the spread of COVID-19 infection impacted market sentiments and reduced scrapped ship deals, according to market report by GMS. Shipbreaking steel plate prices fell by nearly Rs1,000/mt ($20/mt) ex-Alang last week.
In the subcontinent markets, steel prices reached this year’s peak in August, however, the spread of COVID-19 has worried ship recyclers. Steel prices have since cooled-off. On Thursday, prices of 1kg steel plates fell by Rs300/mt to Rs25,850/mt while 2kg fell by Rs27,500/mt, down by Rs150/mt ex-Alang.
Yard owners were prepared for a monsoon slump but the rise in scrap prices in the prior week, higher imported ferrous scrap prices and the expected increase in finished steel demand are supporting market sentiments this week, said traders.
Deals for a general cargo/container vessel Melanesian chief with 5,889ldt and a general cargo Kwangsi with 9,439ldt concluded at $325ldt. A container Zagora with 5,751ldt sold at $360/ldt and a few units for class NK or LR was sold by China Navigation this week to Alang. All these vessels were meant for green HKC recycling.
Pakistan’s scrapped ship market was slow this week as the supply of non-green vessel were tight. But Pakistan continues to remain scrapped vessel sellers’ preferred destination.
A smaller bulker Hamoudi with 3,581ldt sold at $355/ldt to a local recycler. While several offers above $300ldt for decent tonnage were heard in the Pakistani market but those were for trading rather than demolition.
Bangladeshi shipbreaking yards remain stocked with tonnage as the market awaits a rise in domestic steel demand. Yards here bidding at levels below Indian and Pakistani buyers, but are expected to raise bids if they find large tonnages. No trades were reported this week.
Turkish market was quiet this week with steady prices as the recyclers are still in the summer holiday mood. No trades were reported last week.