Vessel prices recover from a low of $150/ldt in the second quarter with all subcontinent markets increasing their tonnages. Pakistan secured maximum tonnages and yards in Gadani are full, while rangebound steel prices put pressure on the shipbreaking scrap prices in India. Ship recyclers in Bangladesh spoke of their association’s intend to cap vessel prices. Markets in Turkey were steady for yet another week, meanwhile, there is a constant fear of a second lockdown across Europe as COVID-19 infections increase rapidly.
Indian buyers experienced a shortage of HKC tonnages this week. A massive increase in COVID-19 cases has led to an increased demand for oxygen in the hospitals, thus, the government has prioritized the supply of medical oxygen and diverted some industrial oxygen supplies to hospitals.
In Alang, approximately 80pc yards have paused their recycling operations on account of shortage in oxygen supply. Oxygen is essential for hot-works in yards. Scrap generations is delayed in Alang as yards are only able to continue with cold-work activities.
Shipbreaking scrap prices rose this week amid supply shortage and a gradual increase in demand from the mills. The index for HMS attachments and Melting rose by Rs550/mt ($7.49/mt) ex-Alang on Friday as compared to Sep 11.
Prices of ship plates and melting scrap have slightly improved in Bangladesh, the yards which are empty for long time are committing tonnages at a higher price. Bangladeshi shipbreakers are keen to unite and bring down bid prices to avoid paying more for the tonnages. Ship recyclers’ association intends to cap vessel prices. However, there may be chances of missing out a few tonnages which are being currently bought by Pakistan.
A bulker vessel MICHELLE HK with 10,338ldt was bought at $377/ldt and a PCC vessel SINGLE EAGLE with 5,048ldt was secured at $415/ldt.
The market in Gadani was quiet this week with prices of ship plates flat to down as expected by the local recyclers. Till mid-September, more than 400,000ldt of recycling ships have reached Pakistan. Imports of containerized HMS was moderate this week. Some market participants expect recyclers in Pakistan to remain quiet for a few months while some traders believe buyers will continue to look out for tonnages.
Local steel plate prices have managed to stay steady, despite the depreciation of Turkish Lira to record lows. There was no major activity reported except EUSRR recycling-based units which arrived locally. COVID infections are constantly increasing in Turkey. However, the government has not announced lockdowns.