28-06-2021 Bangladesh ship-breaking yards ‘virtually full’ as country locks down, By Gary Dixon, TradeWinds
Ship-recycling activity in Bangladesh had already taken a dip before the government’s nationwide coronavirus lockdown from 28 June. Demolition broker Ed McIlvaney told TradeWinds there are “distinct signs” the breaking shipyards there are “virtually full”. This is one reason why buying interest tailed off in the week ending 25 June, he believes. Lower steel prices and regional Covid-19 restrictions may also have played their part, McIlvaney said.
“We must also take into account that it is traditionally known that during the peak of the monsoon season the majority of yard workers head back to their homes, resulting in a slowdown of activity in the recycling yards,” he added. Cash buyer Best Oasis said Bangladesh has announced a seven-day strict nationwide shutdown starting on 28 June after a dramatic surge in Delta variant cases of coronavirus. This will be extended further if the situation does not come under control, the company added.
News footage from Bangladesh showed thousands of seasonal workers trying to leave cities on ferries to return home before the restrictions were imposed. No one will now be allowed to leave home without emergency reasons, and all government and private offices, except for emergency services, will remain closed.
Pakistan remains a keen buyer of tonnage, however. McIlvaney said: “We have not seen much inclination from the Pakistan sector to decrease their appetite for available tonnage.” Levels there are estimated at $590 per ldt on a last-done basis. But the broker added: “It is looking less likely that the above price will be replicated today.”
The 113,000-dwt aframax Oro Singa (built 1999) has been sold “as is” in Batam, Indonesia, with optional delivery destinations. At 17,428 ldt, this equates to $9.2m at a reported price of $528 per ldt. The vessel, formerly owned by Indonesia’s Selebes Sarana, is said to have about 400 tonnes of sludge on board that needs to be removed prior to recycling taking place.
India has been by far the least active major player in the market for some time. But the 4,580-dwt tanker Wid A (built 1989), previously owned by Al Wid Shipping of Iraq, has been sold into Alang at $525 per ldt, or $1.2m. “Despite the quiet market, a considerable number of off-market sales continue to arrive and beach on a regular basis,” McIlvaney said. He counts about 23 moribund ships having arrived in India so far in June.