Bangladesh- one of the world’s largest ship recycler, remained the top buyer position for ship breaking scrap in Mar’19, as per recent released data by GMS data, maintained by SteelMint.
According to data by GMS, it is observed that the Bangladesh has imported about 312,397 LDT Ship breaking scrap in Mar’19, higher by 20.7% M-o-M which includes dry as well as wet containers.
Meanwhile India’s import rose by 25.4% to 114,387 LDT M-o-M in Mar’19. However in Pakistan it reduced on weak demand and registered only 1965 LDT, M-o-M in Mar’19.
Further, with rising demand of steel scrap globally, the total number of ship demolished in India, Bangladesh & Pakistan was marked at 522 in FY19 and Bangladesh marked as largest buyer with 239 (46%) scrapped ships. Inline India & Pakistan demolished around 213 & 70 number of ships in FY19 (Apr’18-Mar’19). In context to LDT, Bangladesh has imported about 2,864,633 LDT Ship breaking scrap, India at 1,739,837 LDT & Pakistan at 1,067,502 LDT in the same time frame.
Coming to the part of pricing sector in the current week, import offers in Bangladesh reached at USD 455/LT for Tankers and USD 465/LT for Containers & USD 445/LT for Dry bulk. As of now Buyers in Bangladesh want to import vessels before the budget which will be on table in 5th June’19, in fear of potential duties/taxes being imposed on the steel sector.
While in India buying activity of scrapped ships have increased in the last week over slight volatility. Prices inch up by USD 5/LT W-o-W & stood at USD 450/LT for Containers and USD 440/LT for Tanker.
In Pakistan, trade activity remained on lower side, however offers improved. While upcoming budget in Bangladesh amid elections in India may keep trades low currently but may increase after that. The prices in Pakistan for containers stood at USD 440/LT, Dry Bulk at USD 420/LT & Tankers at USD 430/LT.
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