Subcontinental shipbreaking market regains mojo as active buying by recyclers and improved scrapped vessel supplies led to a high number of deals this week. Scrapped vessel prices are at around $300/ldt with more tankers being offered for recycling. Recyclers expect shipbreaking trades to improve further as Q4 seasonally has more deliveries reaching the yards.
Pakistani recyclers are still outbidding the competition at $360/ldt for wet units.
The sales of HKC or green vessel to Alang improved during the week. Much of the non-green tonnages offered to the subcontinental market were booked by Bangladeshi and Pakistani yards.
Indian shipbreaking scrap prices remain volatile. Rolling scrap prices rose by Rs200-300/mt ex-Alang on Tuesday amid demand from Gujarat-based mills. Heavy rains had dampened the scrap sales last week, but clearer skies can help lift prices during the week. Also, the Indian rupee’s appreciation against the US dollar will help recyclers increase their tonnage.
A deal for 38,106ldt HKC recycling of VLOC JANICE N is confirmed at $330/ldt ex-Alang. A 3,924ldt Russian-built fishing trawler PRIBOY sold at 395/ldt. The vessel attracted a premium for significant non-ferrous tonnage on board.
Increased availability of ship scrap has pressured steel prices in Pakistan. With the Gadani shipbreaking yard returning to action, the availability of ship plates has improved easing raw material prices for steelmakers and in effect have lowered steel prices in Pakistan. Despite this scrapped vessel trades are expected to remain steady but at lower prices.
Pakistani buyers continued to impress ship owner with their bids this week. A tanker AL NABILA 5 with 9,185ldt was bought at $384/ldt by a Gadani yard, which is the highest price paid by Pakistani recyclers this week. A general cargo vessel STAR B (full spares) with 4,690ldt sold at 366/ldt, while a deal for Indonesian-owned Croatian-built bulker BARA AUNGERAH with 10,283/ldt concluded at $338/ldt.
Bangladeshi recyclers are actively competing against higher bids placed by Pakistani buyers. Yards in Chittagong managed to secured few discounted tonnage from South Asian countries on ‘as is’ basis.
A crude oil tanker from Thailand SRIRACHA EAGLE with 15,629/ldt was bought at $310/ldt on ‘as is’ basis while a fire damaged Aframax crude oil tanker JAG LEELA with 15,082/ldt sold at $278.50/ldt on ‘as is’ basis. The vessel is under tow from Belawan, Indonesia and is expected to have lost significant tonnage due to the fire.
Turkish ship scrap market improved amid higher imported HMS prices which rose by $7-10/mt during the week. A shortage of scrapped vessels supplies to Turkey is also heating ferrous scrap prices imported into Turkey. Scrap prices are expected to ease once EUSRR mandate green recycling vessels reach Turkish shores. Two PSVs and one container arrived for recycling this week.