CY 20: Scrapped Ship Imports Incline 16% in South Asia

• Pakistan clocked a phenomenal growth of 638% Y-O-Y
• Ship breaking volumes in India too rose by 28.65% Y-O-Y in CY 20
• Bangladesh remains the top buyer in South Asia for scrapped ships with 41% share followed by India with 39% and Pakistan with 20% share.

In the year 2020 (Jan-Dec’20), a total of 457 ships were demolished in India, Bangladesh & Pakistan, according to provisional data maintained by SteelMint stats.

During Jan-Dec’20 (CY20), the total quantity demolished in the ports of Alang, Chittagong & Gadani stood at 4,690,056 LDT, recording an incline of 16.29 Y-o-Y as against 4,032,926 LDT (445 ships) in CY19.

Bangladesh remained the top buyer in CY20 with 149 ships. It achieved 1,886,683 LDT in volumes, registering a decline by 23% Y-o-Y which includes dry as well as wet containers.

The major reasons attributed to the sharp fall in vessel import numbers was that many of them were diverted to Pakistan over the cost concerns in Bangladesh. In 2019, Bangladesh had a 60% share of the market but now in 2020 it has slid to 41%. .

In India, the total volume of ships demolished in Alang port was 1,861,695 LDT (194 ships), registering a rise by 28.65% Y-o-Y in CY20. India had achieved 1,447,059 LDT with 181 number ships in CY19.

Meanwhile imports in Pakistan rose sharply to 114 ships with 941,678 LDT Y-o-Y in CY20 as against CY19 with 33 ships (127,539 LDT) clocking a phenomenal growth of 638%

In Gadani market, trade activity remained inactive in Jan-Aug’20, while in Sep’20 Pakistan imported about 205,189 LDT scrapped ships and recorded a 27-Month high. Most of the ships were diverted to Gadani due to a more competitive price.

Prices as on 2nd Jan’21

Prices in $/LT
Source- SteelMint Research