Demand for shipbreaking scrap remained firm throughout the subcontinent inspite of the resurgence of COVID-19 infections.
While India grapples with oxygen shortage at its shipbreaking yards, limited working hours in Bangladesh and Pakistan due to lockdown and the holy of month of Ramadan are affecting ship demolition activities.
According the weekly reports by GMS and Best Oasis, market conditions are stable despite the lockdowns in India, Pakistan, Bangladesh and Turkey.
While demand from end-buyers remains strong, recycling yards in Alang are struggling to keep up with it due to shortage of oxygen cylinders which have been diverted for medical use. The surge in COVID-19 cases has brought on several lockdown restrictions. Still, buyers are offering good price for available tonnage. Only a handful of yards remain operational as steel prices have shot up this week, due to a lack of production. Oxygen inventory at the yards is expected to get over within a week. One reefer, Ice Rose (6,828ldt), was sold last week at $495/lt ldt.
Bangladesh continues to offer the highest price for vessels in the market in the subcontinent. Market conditions are stable despite the lockdown due to rising number of COVID-19 cases. Yards are operating for limited hours which may lead to stockpiling of inventories at the recycling yards.
Two more tankers were committed into Chattogram this week, as the Ontari (4,828ldt) was sold by Indonesian owners Bull for $525/lt ldt, whilst the Vietnamese controlled Dai Nam (9,276ldt) was concluded at $448/lt ldt basis an ‘as is’ Quang Hinh, Vietnam
Demand remained strong with end-users offering competitive prices in Pakistan. The Pakistani Rupee weakened by over 50 paise this week and is currently trading at PKR 153.24 for a dollar. Steelmakers are worried about the government’s decision to hike electricity tariff which could hit the industry hard.
One mid-sized unit arrived in Turkey from Canada last week under EU regulations. Import scrap prices have softened by about $9/mt whereas the domestic prices were stable.