With rising scrap prices globally, Ship breaking market also seen significant surge in prices by USD 5-10/MT during last week (week 35, 21-27 Aug’17).
The another reason sited for the rising prices is coming Eid festival which likely to halt operation for time being; forced recyclers to re-stock material. So the market saw more ships coming to be scrapped as well as the prices soaring.
1. Buyers in India continued to participate in the market at marginal level. Prices increase by USD 5/MT W-o-W reaching USD 385/MT for General Cargo and USD 405/MT for Tanker
2. Bangladesh has sharply increased its Ship breaking imports and remained in the top position this week. Majorly deals were closed for Chittagong. Prices increase by USD 5- 10/MT W-o-W reaching USD 395/MT for General Cargo and USD 415/MT for Tanker. The country produce more than 50% steel though ship breaking scrap, according to Industry participants.
3. Pakistani market prices marching upward trend shows that there is good demand for tonnage. Meanwhile, major demand seen towards LDT dry Vessels. Prices increase by USD 5-10/MT W-o-W reaching USD 390/MT for General Cargo and USD 400/MT for Tanker.
4. China prices remained more or less stable, no major existence seen in the market. Prices remains at USD 260/MT for General Cargo and USD 270/MT for Tanker in China.
5. The prices in Turkey finding stability as an impact of the upcoming Eid holidays. While, Turkish Lira continued to strengthen against the U.S. Dollar (about TRY 3.44). Offers assessed at USD 295/MT for General Cargo and USD 305/MT for Tanker
Ship Recycling Picked up in 2016
Global ship recycling activities picked up in 2016 owing to different anti dumping duties imposed by countries like India, Bangladesh and Pakistan on imported steel and lower freight realizations.
There was an increase of 20% in total number of ships recycled in 2016, which was recorded at around 863 against 689 in the year 2015. India being the top destination for ship recycling in 2016.
In first quarter of 2017 (Jan-Mar),196 ships were sold in total for recycling. Out of which 128 ships were recycled in the South East Asian countries like India,Pakistan and Bangladesh, according to NGO ship-breaking.
Global Ship Breaking Prices, Week-35
| Particular/Delivery | Size, Grade, Origin | Prices | Change |
| CNF India | General Cargo | 385 | + 5 |
| Tanker | 405 | + 5 | |
| CNF Bangladesh | General Cargo | 395 | + 10 |
| Tanker | 415 | + 5 | |
| CNF Pakistan | General Cargo | 390 | + 5 |
| Tanker | 400 | + 10 |
Prices in USD/LT Ldt
Source: SteelMint Research
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