Despite mishaps, Bangladesh’s ship demolition market holds steady
Bangladesh is leading in the ship demolition sector. Trailing behind are Pakistan, India, and Turkey. GMS, the world’s largest buyer of ships (for demolishing) revealed in its latest update (between 3-8 October 2021) with deals comprising a 300,361 dwt very large crude carrier (VLCC), Hapon (1996), and a 107,132 dwt Aframax River (2002).
Breakdown of standings
Several products and chemical tankers were also inked in the same period. Despite that, tankers appeared inactive in the demolition market. Industry observers suspected the stagnation could be related to the recent mishaps at Chattogram yards, which dented Q4 2021’s performance for Bangladesh’s ship recycling.
Meanwhile, India’s steel prices are not expected to rebound, partially due to the plummeted iron ore rates and China’s lowered demand. India’s hot-rolled coil (HRC) prices only peaked at Rs70,000 – 71,000 (US$941) a tonne in July 2021, and dived to Rs66,800 – 67,000 (US$888) a tonne in August. The pandemic also halted several shipyards’ operations from lack of industrial oxygen.
Data by steel research and analyst, SteelMint showed India’s average iron ore prices fell by around 25 per cent in August 2021. 62% Fe Fines dropped from almost Rs9,600 (US$127) per tonne to Rs7,000 (US$93) levels in Odisha, while lumps (5-18mm, Fe 63%) dived sharply from Rs14,000 (US$186) a tonne to about Rs11,500 – 12,000 (US$159). Another contributing factor to the drop is said to be Rupee’s softening against the Dollar. Nevertheless, steel mills are choosing to keep their chins up for prices in spite of the challenges.
Pakistan’s yards commenced work on 3 tankers recently, including the 107,181 dwt Escapade (1998) and the 68,967 dwt Panamax, Pacific Bravery 1 (1999). Meanwhile the 1995-built Sharifa 4, 95,416 dwt, is now at anchor. GMS’ price indications showed Bangladesh recyclers led with prices at US$610 per tonne for container ships, US$600 for tankers, and US$590 for bulk carriers. They were followed by yards in Pakistan, with around US$10 lower in each category. India trailed behind with US$20 lower. Turkish prices stood steady at US$300, US$290, and US$280 respectively.
Marine Online News Team
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