South Asia : Ship Breaking Offers Continue Downtrend Due to COVID-19

Imported ship breaking scrap prices declined by USD 10-30/LT in South Asian markets due to COVID-19 outbreak, last week’s report shows.

Prices fell sharply by USD 30/LT in Turkey and by USD 20/LT in Pakistan. The same in India slipped by USD 10/LT on a weekly basis.

Despite weak sentiments in the global market, few South Asian buyers reportedly signed a couple of deals across all recycling market during last week.

India

Prices of imported containers decreased by USD 10/LT Ldt for Indian buyers. Several ships were detained at Alang port this week but authorities refused to permit anchoring till further order comes.

— Ship breaking market suffered another disastrous week in fundamentals. Indian rupee settled at INR 75.23 as against U.S. dollar, compared to INR 72.17 in the previous week.

— Ship breaking prices to India reduced to USD 380/LT for Containers while the same dropped by USD 10/MT to USD 360/LT for Tanker. Offers for Dry bulk came down to USD 370/LT.

Deals

— NEUSA (5,746 LDT), Petrobras controlled tanker was booked before closure at USD 218/LT LDT.

— The total tonnage reported in the Alang port last week was at 52,575 LDT.

Bangladesh

Bangladesh ship breaking market remained open for buyers looking for deals before complete global lockdown. However, restrictions and quarantine procedures somehow is halting arrival of ships & vessels.

— Ship breaking prices in Bangladesh stood firm at USD 370/LT for Containers, USD 350/LT for Tanker & USD 340/LT for Dry bulk.

Deals

— BERGE AORAKI (21,221 LDT), Berge Bulker of Singapore at USD 375/LT LDT.

— DISCOVERER (2,206 LDT), the smaller Chinese owned 1980 built Canadian research vessel at USD 380/LT LDT.

— The total tonnage reported last week in the Chittagong port was at 122,849 LDT.

Pakistan

The nation remained a way behind their competitors & no major deals were reported in the country in last week.

As per our reliable sources, Pakistan’s Gadani port has been completely sealed off over Covid-19 fear for recycling this week. Just like India, Pakistan is also avoiding any new recycling units.

— Fresh offers of imported scrap to Pakistan dropped by USD 20/LT W-o-W with the offers of USD 360/LT for containers, USD 330/LT for Dry Bulk & USD 340/LT for Tankers.