Category Archives: Ship Breaking

South Asia: Imported ship-breaking offers up $10/t w-o-w

Ship recycling prices saw an uptick of $10/light displacement tonnage (LDT) last week in Bangladesh and India. However, Pakistan faced a frustrating week after losing several deals.

Bangladesh

Bangladesh continued to lead the sub-continental recycling market despite the Eid holidays last week. The lockdowns have started to ease across the country, and a number of deals had been concluded by Bangladeshi recyclers at over $600/LDT.

The competing markets, Pakistan and India were a bit behind the market leader.

  • A general cargo, Harin Transport 17 of 798 LDT, arrived at Chattogram.
  • A liquefied petroleum gas (LPG) tanker, Mediterranean Energy (under tow) of 32,001 LDT, was beached at Chattogram.
  • A tanker, Orient Well of 5,218 LDT, was also beached at the port.
  • Total tonnage reported last week at Chattogram Port was 38,017 LDT, down by 72% w-o-w.

India

Indian steel plate prices have come roaring back, as Alang buyers tried desperately hard to compete against its competitors. According to sources, Alang recyclers managed to secure their share of HKC-compliant green vessels as well as specialist stainless steel units, offshore vessels, reefers and passenger units.

After the depreciation of the Indian  rupee (INR) several weeks ago, it is currently trading at  74 against the US dollar. India is back in the picture and it is more likely to be a positive time for the Indian market.

  • Two reefers, Green Klipper (2,495 LDT) and Green Ocean (2,495 LDT), arrived at Alang Port.
  • Two chemical tankers, Simba (10,846 LDT) and Theresa Tiga (5,969 LDT), also arrived at the port.
  • Total tonnage at Alang Port last week amounted to 22,195 LDT, down by 9% w-o-w.

Pakistan

Last week, Pakistan lost several well-placed vessels intended for the Gadani market, to a prolifically deal-making Chattogram. End buyers took off on account of the Eid holidays last week, hence any available vessels simply went to Bangladesh, despite being a holiday season there at that time.

According to sources, end -buyers have started to get nervous as prices approach $600/LDT, and the fact that India is catching up fast with Pakistan, which should be their main concern at present rather than catching up with Bangladesh, which seems too far ahead.

  • A tanker, MR Nautilus (10,650 LDT), arrived at Gadani Port.
  • Two barge, Julnar (1,600 LDT) and Yabri (1,800 LDT), were beached at Gadani Port.
  • Total tonnage at Gadani Port last week was reported at 87,608 LDT, stable w-o-w.

Prices as on 26th Jul’21

Prices in $/LDT
Source- SteelMint Research

 

South Asia: Imported ship-breaking offers up $10/t w-o-w

Ship recycling prices in the sub-continent saw an uptick of $10/light displacement tonnage (LDT) last week. The markets continued their upward trajectory as local steel plate prices regained momentum.

Bangladesh

Recycling yards in Bangladesh clocked sales at around $600 per LDT with several ships arriving at Chattogram Port last week. Tonnage supply was heard to be tight. As per reports, such record high price levels were last seen in 2008, when these had  touched $800/LDT. The rising tonnage prices may push ship owners to carry out their aging units for recycling.

  • A very large crude carrier (VLCC), Daring, of 40,970 LDT was beached at Chattogram.
  • A liquefied petroleum gas (LPG) tanker, Mediterranean Energy (under tow), of 32,001 LDT arrived at Chattogram.
  • A tanker, Zhong, of 5,980 LDT was also beached at the port.
  • Total tonnage reported last week at Chattogram Port was 136,627 LDT, up by 113% w-o-w.

India

A consecutive rise in steel prices for the past few weeks left Alang buyers in a firm position and even more eager to acquire some more specialist units currently on offer. According to sources, many offshore and  passenger vessels, reefers and stainless-steel tankers reached Alang yards amid a surprising lack of Hong Kong Convention compliant green vessels.

  • Two oil tankers, Isla (5,993 LDT) and Nero (5,985 LDT), were beached at Alang Port.
  • Bala, a roll-on, roll-off (RoRo) vessel, of 12,073 LDT was also beached at the port.
  • A tug, Dona Paula II (391 LDT), arrived at Alang Port.
  • Total tonnage at Alang Port last week amounted to 24,442 LDT, down by 30% w-o-w.

Pakistan

Gadani recyclers will certainly have to rethink its strategy, if it wants to secure tonnage in the coming months. According to sources, with new regulations on tankers implemented recently, ship owners are obligated to make sure their vessels are cleaned properly and thoroughly for hot works, before arriving at any sub-continent recycling destination.

  • An ore carrier, Berge Stahl (41,569 LDT), was beached at Gadani Port.
  • Two tankers, Elka Aristotle (17,000 LDT) and MR Nautilus (10,650 LDT), arrived at Gadani Port.
  • Total tonnage at Gadani Port last week was reported at 87,608 LDT, down by 31% w-o-w.

Prices as on 19th Jul’21

Prices in $/LDT
Source- SteelMint Research

 

 

South Asia: Imported ship-breaking offers firm, but Bangladesh prices rise $20/t w-o-w

Imported ship-breaking offers from South Asia were stable last week on account of two factors. One was the firmer steel plate prices during the prevailing monsoon. Secondly, there was an increasing lack of tonnage available, which further weakened offerings from the sub-continent.

India

Offerings from Alang were the lowest in the sub-continent , but demand here, ironically remained strong. An overall decrease in steel plate prices, along with the depreciating rupee (INR) led to an almost  10% decline in prices, which is making it tough for India to compete with the Pakistani and Bangladeshi markets.

However, according to sources, there has been a relatively steady supply of specialist and offshore units, along with a couple of green vessels, for Indian end buyers.

  • An oil tanker, Azov Sea (9,691 LDT), beached at Alang Port.
  • A supply vessel, Vighnaharta (1,230 LDT), was also beached at Alang Port.
  • Bala, a RoRo vessel, of 12,073 LDT, arrived at the port.
  • Total tonnage at Alang Port last week amounted to 34,918 LDT, down by 23% w-o-w.

Bangladesh

Bangladesh continues to lead the sub-continent recycling market with some amazing deals concluded in Chattogram last week, pushing up imported ship-breaking offers by up to $20/tonne w-o-w. However, the tonnage was down more than 50% w-o-w.

However, the government has extended the ongoing lockdown across the country for yet another week, as the aim is to control the worrying spread of Covid-19.

  • A reefer, Hua Jian 107, of 2,665 LDT, arrived at Chattogram.
  • Pacific B, a heavy lift carrier of 15,931 LDT, arrived at Chattogram.
  • A bulk carrier of 20,980 LDT, Win Win, was also beached at the port.
  • Total tonnage reported last week at Chattogram Port was 64,217 LDT, down by 51% w-o-w.

Pakistan

Although Gadani Port has been strongly competing on available tonnage, it has missed out on some of  local units to an impressive Bangladeshi market. Sources believe  the second half of the year will be bullish for the Pakistan ship-breaking market when local buyers would be looking to divert many more decent LDT vessels from Bangladesh and Indian competitors.

  • A tanker, Dubra (8,392 LDT), beached at Gadani Port.
  • Two barges, Yabri (1,800 LDT) and Julnar (1,600 LDT), arrived at Gadani Port.
  • Total tonnage at Gadani Port last week was reported at 126,779 LDT, up by 14% w-o-w.

Prices as on 12th Jul’21

Prices in $/LDT
Source- SteelMint Research

 

South Asia: Ship-breaking imports trends mixed in Jun’21

Ship-breaking imports into the South Asian markets remained volatile m-o-m in Jun’21. Imports increased into Bangladesh and India while Pakistan saw a sharp fall  during the month.

Bangladesh

Bangladesh saw a steep 79% increase in ship-breaking imports  m-o-m in Jun’21 as compared to a 25% m-o-m decrease in  in May’21. The total volume of ships beached at Chittagong Port last month was reported at 152,308 light displacement tonnage (LDT).

Reason behind the rise in imports-

  • Reduction in advance tax (AD): The advance tax (AD) on imports of industrial raw materials had been reduced to 3% from the earlier 4%. Ship imports are expected to increase due to a reduction in this duty.

India

Alang, has also seen a slight 5-6% increase in ship-breaking imports   in Jun’21 as compared to a 1.3% m-o-m decrease  May’21. The total volume of ships beached at Alang Port last month was 152,308 LDT.

Reason behind the rise in imports-

  • Decrease in Covid-19 cases: Covid-19 cases in India have finally started to come down. Oxygen supplies to domestic recycling yards have also resumed, which left a positive impact on overall steel prices/demand and vessel prices in Alang.

Pakistan

The Gadani ship-breaking yard reported a 44% m-o-m fall in its import volumes in Jun’21 as compared to a 21% decrease in May’21.  According to sources, the total volume of ships beached at Gadani Port last month was 63,505 LDT.

Reasons behind the fall in imports-

New tanker guidelines: Some additional guidelines had been released with regards to thorough cleaning of tankers arriving in the country. These regulations are now expected to be even more strict in terms of obtaining a ‘gas-free for hot works certificate’ to beach locally. 

Analysis

  • A total of 26 ships were demolished at Chittagong Port in Jun’21 as against 24 in May’21.
  • A total of 25 ships were demolished at Alang Port last month compared to 19 in May’21.
  • A total of 10 ships were dismantled at Gadani Port in Jun’21 as against 22 in May’21.
 

South Asia: Imported ship-breaking offers up by $10/t w-o-w

The sub-continent’s ship recycling markets saw an uptick of $10/light displacement tonnage (LDT) last week. A slowdown in supply of ships resulted in some overly aggressive offerings from end-buyers.

India

Indian steel prices fell by at least $18/tonne (t), as the currency depreciated to the  74.80-mark last week. According to sources, a drop of about 2.5% in the Indian rupee (INR) in the past couple of weeks led to a decline in local steel prices by about 4% w-o-w. Currently, the INR continues to trade firmly at 74.50 against the US dollar.

  • A chemical tanker, Gem (3,050 LDT), arrived at Alang Port.
  • A passenger vessel, namely Leisure (9,630 LDT), was beached at Alang Port.
  • A reefer, Dole Costa Rica of 8,554 LDT, was beached at the port.
  • Total tonnage at Alang Port last week amounted to 45,509 LDT, rising by 282% w-o-w.

Bangladesh

Despite the strict government lockdown extended for yet another week, few high-priced deals were concluded in Chattogram from existing cash buyers. According to sources, essential port operations like vessel arrivals are expected to continue during this period.

Vessels from the Far East were sold to Gadani buyers in Pakistan, due to the slightly higher market rates there.

  • A reefer, Hua Jian 107 of 2,665 LDT, arrived at Chattogram.
  • Two tankers, namely Prestig (1,561 LDT) and Tri Wings (2,771 LDT), were beached at the port.
  • A bulk carrier, KT 02 of 7,456 LDT, was beached at the port.
  • Total tonnage reported last week at Chattogram Port was 132,215 LDT, down by 29% w-o-w.

Pakistan

Pakistan continued to lead the sub-continental recycling market last week too. According to sources, at present, there are some new tanker regulations in force at Pakistan’s Gadani Port. Despite this, the market hopes that buyers will remain active in booking tonnages.

  • An ore carrier, namely Berge Stahl (41,569 LDT), arrived at Gadani Port.
  • Two tankers, namely Elka Angelique (10,176 LDT) and New Diamond (38,964 LDT), arrived at Gadani Port.
  • Total tonnage at Gadani Port last week was reported at 111,051 LDT, up by 47% w-o-w.

Prices as on 5th Jul’21

Prices in $/LDT
Source- SteelMint Research

 

South Asia: Ship-breaking offers stable w-o-w; but no fresh deals struck

South Asian recycling markets continued to perform surprisingly well last week. Pakistan led the way with some of the best numbers of unit (vessels) deals. Bangladesh was also not far behind its counterparts. India, however, was slow with few vessels. Overall, ship-breaking prices in these markets remained stable w-o-w. However, no deals were concluded last week.

India

In India, several small light displacement tonnage (LDT) vessels were beached in Alang lately. There are signs that Alang buyers will likely be more competitive over these monsoon months, with lockdowns beginning to ease in some states.

Meanwhile, the Indian rupee continues to trade firmly at 74 against a US dollar, leaving India well-positioned. Furthermore, Covid-19 cases are finally decreasing in the country.

  • A supply vessel, T 20 (2,506 LDT), arrived at Alang Port.
  • A barge, namely DB Al Ashoosh (under tow, 2,150 LDT), was beached at Alang Port.
  • A liquefied natural gas (LNG) vessel called Katara, of 2,538 LDT, arrived at the port.
  • The total tonnage at Alang Port last week amounted to 11,916 LDT, down by 80% w-o-w.

Bangladesh

Unsurprisingly, no new sales happened last week in Bangladesh. Few vessels were being diverted to Pakistan due to increasing accumulation of tonnage in local yards, that were beached in Chattogram over the first six months of the year. Perhaps, this could be the reason for reduced demand in the local market, even as local steel plate prices showed signs of volatility.

  • A cement carrier, Tabernacle Prince of 5,360 LDT, arrived at Chattogram.
  • Two tankers, namely Vinson (46,310 LDT) and EM Vitality (48,087 LDT), arrived at the port.
  • An LNG carrier, Caribbean Energy (under tow) of 31,143 LDT, was beached at the port.
  • The total tonnage reported last week at Chattogram Port was 187,243 LDT, up by 13% w-o-w.

Pakistan

In Pakistan, some interesting purchases were concluded recently by local buyers as steel plate prices firmed up at a dizzying rate over recent weeks.

Meanwhile, after an incident where, a floating storage and offloading (FSO) unit, ( carrying 1,500 tons of hazardous mercury sludge, after being denied permission to dock in Bangladesh), made its way towards Pakistani waters, there have been some increased regulations on tankers, as per reports. It seems, it will now be even more stringent to obtain a ‘gas-free for hot works certificate’ to beach locally.

  • A tanker, namely Splendour Emerald (9,696 LDT), was beached at Gadani Port.
  • Two tankers, namely New Diamond (38,964 LDT) and Rama 1 (2,661 LDT), arrived at the port.
  • Total tonnage at Gadani Port last week was reported at 75,537 LDT, up by a whopping 100% w-o-w.

Prices as on 28th Jun’21

Prices in $/LDT
Source- SteelMint Research

 

South Asia’s ship-breaking imports fall in May’21, impacted by lockdown

South Asia’s recycling market, which covers India, Bangladesh and Pakistan, reported a m-o-m fall in ship breaking imports in May’21.

The Covid-induced lockdowns in these countries, which continued into May’21, as well as the Eid holidays  led to the fall in imports , particularly in Pakistan and Bangladesh.

Bangladesh

Bangladesh, one of the largest ship recyclers that often leads the market, saw a sharp decrease in ship-breaking imports by 25% m-o-m in May’21. The total volume of ships beached at the Chittagong Port last month was reported at 182,743 light displacement tonnage (LDT) .

Major factors behind the fall :

  • Lockdown impact: The government had announced a lockdown in mid-Apr’21 which continued into May , leading to shutdown of the recycling yards. This led to local recyclers struggling and the market suffered a setback.
  • Eid holidays: The market slowed down a bit as buyers remained on the sidelines due to the Eid holidays which led to limited buying enquiries during the month.
  • Tough competition: Pakistan surpassed Bangladesh in terms of prices, such was the growing demand for large LDT vessels from Gadani Port.

India

Alang, one of the world’s largest ship-breaking yards, witnessed a slight 1.3% m-o-m dip in ship-breaking imports   in May’21. The total volume of ships beached at Alang Port, India last month was  144,049 LDT.

Major factors behind the fall:

  • Pandemic impact: It was unsurprising that the second deadly wave of Covid-19 kept recycling yards shut.
  • Oxygen supply: Oxygen availability was one of the key reasons. Diversion of the entire volume of liquid oxygen that came to Alang was redirected to local hospitals for battling Covid.
  • Inward clearances: Many owners were trying to avoid making deliveries to Alang as the inward clearances of the incoming crew were getting delayed.

Pakistan

Gadani ship-breaking yard reported a 21% m-o-m fall in its import volumes in May’21. According to sources, the total volume of ships beached  at Gadani Port, Pakistan last month was 113,033 LDT.

Major factors behind the fall:

  • Surge in Covid-19 cases: The ship recycling sector was majorly affected as the yards were forced to shut down due to increasing Covid-19 cases across the country.
  • Eid holidays: The Pakistan market remained a little disrupted during the Eid holidays last month. However, demand in the local market was strong.

Analysis

  • The total number of ships demolished at Chittagong Port in May’21 was24  as against 21 in Apr’21.
  • The total number of ships demolished at  Alang Port last month was 19  compared to 14 in Apr’21.
  • A  total of 22 ships  demolished at Gadani Port in May’21 against 13 in Apr’21.

 

 

South Asia: Ship-breaking prices volatile but demand firm

Ship-breaking prices in the South Asian markets remained volatile w-o-w. It has been somewhat an uncertain period for both Bangladesh and Pakistan markets, with prices falling amidst bearish sentiments throughout the week, especially in Chattogram. However, despite limited deals, demand remained firm.

Bangladesh

Bangladesh’s annual budget  announced last week brought good news for the domestic ship recycling sector. The Advance tax(AD) on imports of industrial raw materials has been reduced to 3% from the earlier 4%. However, ship prices in the long term are expected to decrease due to a reduction in this duty. As per sources, steel plate prices already started declining last week in Chattogram.

  • A bulker, Win Win of 20,980 light displacement tonnage (LDT), was sold at $578/LDT.
  • Two tankers, namely CE-Niris (16,337 LDT), and Hua 1 (16,062 LDT), arrived at Chattogram Port.
  • A hopper dredger, Gory (under tow) of 21,186 LDT, was beached at the port.
  • The total tonnage reported last week at Chattogram Port was at 154,228 LDT, up by 13% w-o-w.

India

Covid-19 cases across India have finally started to slow down from the horrific peaks seen a few weeks ago. Oxygen supplies to domestic recycling yards also resumed this week. As per sources, recycling activities,  which left an overall positive impact on steel prices/demand and vessel prices last week in Alang, can finally resume.

  • A container, DOLE COSTA RICA (8,308 LDT), was concluded at $593/LDT.
  • A floating production storage and offloading (FSPO) unit, namely Producer of 34,460 LDT arrived at Alang Port.
  • A reefer, Ice Ranger (6,931 LDT), was beached at Alang Port.
  • An oil tanker, Nori (under tow) of 3,199 LDT was also beached at the port.
  • The total tonnage at Alang Port last week amounted to 110,854 LDT, up by 74% w-o-w.

Pakistan

Pakistan is moving ahead with several large LDT deals concluded the country recently. The budget did not have any negative impact on the local recycling industry. As per sources,  some additional guidelines have been released this week on the thorough cleaning of tankers arriving in to the country.

  • A tanker, namely Elka Vassiliki (17,000 LDT), was beached at Gadani Port.
  • Two tankers, namely Hazel (9,570 LDT) and Rama 1 (2,664 LDT) arrived at the port.
  • Total tonnage at Gadani Port last week was reported at 29,234 LDT, down by 8% w-o-w.

Prices as on 12th Jun’21

Prices in $/LDT
Source- SteelMint Research

 

South Asia’s ship-breaking market stable w-o-w

South Asian ship-breaking prices remained stable week-on-week (w-o-w) as a greater degree of awareness seems to have entered the market last week, both at the cash and end buyers’ end, as more buoyant offerings were seen over the past few months.

Bangladesh

The Bangladesh’s market was relatively quiet last week as the recyclers fell behind their Pakistan counterparts, particularly for the largest units currently on offer. It would be the best time to purchase smaller light displacement tonnage (LDT) vessels as there is high risk involved in the longer cutting times involved on larger LDT units during rainy season. The market also gets slow during this time. As per sources, very few deals have been struck recently to satisfy a decent local demand.

  • A vehicles carrier, Since (under tow), of 15,442 LDT and a heavy lift carrier Zhen 17 of 17,551 LDT arrived at Chattogram Port.
  • Two tankers, namely Luck Grow 889 (2,168 LDT) and Med (20,585 LDT)also arrived at the port.
  • The total tonnage reported last week at Chattogram Port was 136,817 LDT, up by 11% w-o-w.

India

Despite a rise in steel prices by nearly $20/tonne (t) w-o-w, the supply of vessels to India were mainly non-ferrous (stainless steel) units. As per sources, the country is still battling Covid-19. As a result, most of the recycling yards are closed and inward clearance of incoming crew is getting delayed. Many owners are avoiding  deliveries to Alang for the time being.

  • A mobile offshore drilling unit (MODU) namely Rover (under tow) of 18,889 LDT, arrived at Alang Port.
  • An OSV, namely Tag 17 (1,425 LDT) was beached at Alang Port.
  • A chemical tanker, Falcon (6,695 LDT), and another one, Shun Li of 2,427 LDT, arrived at the port.
  • The total tonnage at Alang Port last week amounted to 63,625 LDT, up by 162% w-o-w.

Pakistan

Pakistan’s ship breaking market improved and slowly started to chip away at Bangladesh’s share of tonnage. The budget is reportedly coming up on 11 June’21 and (will come into effect on 1 July’21) and, as such, all eyes will be on the outcome of the budget as few changes in the ship recycling sector are expected as monsoon is about to approach. As per sources, with a growing demand and firm price outlook, a greater number of vessels could be concluded for Gadani over the coming months.

  • A tanker, namely Elka Vassiliki (17,000 LDT) arrived at Gadani Port.
  • Two tankers, namely Nolla (1,828 LDT) & Toteel (1,944 LDT), were also beached at Gadani Port.
  • Total tonnage at Gadani Port last week was reported at 31,895 LDT, down by 53% w-o-w.

Prices as on 7th Jun’21

Prices in $/LDT
Source- SteelMint Research

 

Global dry bulk freight market to be tight for 2022

For the rest of 2021 and probably next year, the global dry bulk freight availability will stay stretched, unable to match the booming demand, Yu Guixun, general manager of Chun An Shipping Group Limited (Chun An Shipping), a major shipment service company, shared at Mysteel’s 2021 Steel Semis Imports Training in Shanghai on May 28.

The backlog of orders at the shipbuilders globally, a key indicator of dry bulk freight capacity, has been declining in recent years, he said.

By the end of March, the backlog among the Chinese shipbuilders, for example, approximated 78.5 million deadweight tons (dwt), down 1.4% on year, 6.9% lower than March 2019 or 16.2% lower than that for March 2018, Mysteel Global noted from the data released by the China Association of National Shipbuilding Industry.

Usually the Chinese shipbuilders need to pocket an about 80 million dwt backlog for steady operations, Mysteel Global understands.

“Many shipbuilders in the world have not been eager to accept bookings for new dry bulk ships ever since 2013, and it is lossmaking for them to lock in new shipbuilding contracts despite that the global freight market has appeared robust recently, and chartering of all kinds of vessels has doubled or tripled in recent months,” he added, partly as bulk commodities prices such as steel have been too high for the shipbuilders to fulfil their shipbuilding orders even at a breakeven level.

Chun An Shipping, established in 1998, is a subsidiary of Chun An Logistics with core businesses being steel and project cargoes between China, ASEAN countries and other Asian-ANZ, African, and the Middle East Regions, according to the company profile, and China’s leading steelmakers including HBIS Group Co and Rizhao Steel Holding Group Co are among its long-time customers, according to Yu.

Under the circumstances, the world’s dry bulk fleet capacity growth is 4.3% in 2020 and it is expected to be unchanged on year at 4.3% in 2021, but it down 1.6% on year in 2022, according to him.

Globally, the demand for dry bulk shipment capacity has been extremely robust and will remain so for the rest of the year with the restart of the various economies despite the ongoing COVID-19 outbreaks in many countries, according to Yu, and it will recover fully to the pre-COVID level by 2022.

Among all the major economies, China, as the world’s second largest economy, has seen greater demand to ship wind power equipment to the offshore wind power stations in line with China’s commitment to achieving carbon emission peak by 2030 and realizing carbon neutral, Yu highlighted.

The global dry bulk freight market, thus, “is unlikely to correct the mismatch in demand-supply in the short run,” he predicted.

The world’s Baltic Dry Index (BDI), the bellwether of the world’s dry bulk freight market, has been hovering high above 2,000 points since mid-March, and once shot up to an 11-year of 3,266 points on May 5.

BDI has been hovering below 2,000 most of the time in the 21st century, though it had been volatile over 2005-2009, shooting up to historical highs over 2007-2008 before the financial crisis in the fourth quarter of 2008 because of the extremely robust demand from the series of dry bulk commodities during the period, Mysteel Global understands.

Written by Lea Li, liye@mysteel.com

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.