South Asia: Imported scrapped ships’ offers rally by upto $25/LT w-o-w

Ship breaking prices in Asian markets saw an uptick by $10-25/LT. The prices for Pakistan increased sharply by $25/LT, while the same for India & Bangladesh marked a hike of $10/LT, w-o-w, as per SteelMint’s weekly assessment.

Pakistan

Gadani market continued to see an improvement in prices due to major ups & downs in the local steel prices amid the decision by government to not to increase the electricity tariff (which affects cutting costs). Secondly, taxes on imported scrap will be charged at the custom tariff rate (not actual imported rate), which remained another factor affecting the scrapped ship prices, this week.

In terms of pricing, Gadani market has overtaken Bangladesh & remained on the top in the recycling market rankings, with many demanded larger LDT units (including Capes and VLOCs) concluded for Pakistan.

• The Panamax Bulker THE MERCIFUL (9,796 LDT) was committed at $480/LT.
• The second Sinokor VLOC – the SINOCARRIER (39,125 LDT) fetched an impressive price at $478.5/LT.
• Total tonnage reported at the Gadani port last week was 4,400 LDT.
• Two General Cargo were beached at the port namely Princess Dina (2,105 LDT) & Sea Queen (1,915 LDT).

Bangladesh

The Bangladeshi market remained a way behind their sub-continent competitors and it was unsurprising to see lower sales for another week, as end-buyers have missed out on some favored units, with Pakistan roaring back.

• The Indonesian Soechi finalized their tanker FORTUNE GLORY XLI (10,659 LDT) at $475/LT.
• The total tonnage reported last week in the Chittagong port was 91,034 LDT.
• Five bulk carrier- Winfred (6,310 LDT), Rigel (10,156 LDT), Refinded (7,352 LDT), Pravik (7,352 LDT) & Anda Raya (7,925 LDT) were beached at the port.

India

Demand in the scrapped ship market remained moderate as local steel prices have remained volatile in India since last few weeks. However, the prices were lower compared with the Bangladesh and Pakistan market.

• The Indian Rupee remained firm considerably, trading around INR 72.9 as against the U.S. Dollar.
• The USA built and owned bulk carrier TEXAS ENTERPRISE (7,646 LDT) was committed at a whopping $415/LT basis an “as is” Djibouti delivery.
• The total tonnage reported at the Alang port last week was at 41,447 LDT.
• A tanker was beached at the port, namely Ace (9,359 LDT).

Prices in $/LT
Source- SteelMint Research