Subcontinental shipbreaking market was in a wait-and-watch mode over the week as the upward trend in steel prices seen in the last few months slowed down.
Ship buyers are expecting to see further correction in prices, hence preferred to stay on back foot. Bangladesh continued to book vessels amid healthy domestic demand while Pakistani buyers were also aggressively securing tonnages. However, a mercury laden tanker has been brought to Gadani, Pakistan, which is considered to be illegal, and a proper investigation is in process.
Steel prices in India declined by Rs1,000/mt lately and while shortage of oxygen cylinders has kept dismantling activities to a minimum.
Markets in Turkey softened last week, and end-buyers reduced their offers as global scrap prices remained range-bound.
Shipbreakers in Bangladesh were hungry to fill up their empty plots with tonnages, largely with tankers. An FSU vessel named Energy Star of 42,686ldt was bought last week at $530/ldt. Imported scrap prices have declined by $20-25/mt in the previous week.
Yards in Alang are facing shortage of oxygen cylinders and the gas cutting activities have slowed down. Shipbreakers were not able to secure tonnages as Pakistan and Bangladesh are paying higher for the vessels.
The Ship Recycling Industries Association of India (SRIA) are requesting government to lift the ban on oxygen cylinders and normalize its supply to the industries due to adequate availability of oxygen cylinders for hospitals now.
The daily Davis Index for HMS attachments and Melting declined by Rs2,500/mt ($34.49/mt) ex-Alang in the last week as compared to the preceding week.
Ship recyclers in Pakistan are worried as a mercury laden tanker has been brought to a Gadani based ship recycling yard. There has been an investigation from the environment department as the tanker was carrying toxic chemicals. The end buyers are staying away from booking tonnages as iron ore, rebar and shredded scrap prices were rangebound. They are also waiting for the media attention to shift away from Gadani before they make any new offers.
No market sales were reported in the last week, however, recyclers were eager to bid on the available tonnages. Imported scrap prices declined by $10-13/mt and Turkish Lira also slid to an all-time low.