India: Imported ship breaking offers stable with no fresh deals

Ship breaking activities in India remained firm for nearly a month over increased supply and weak demand amid COVID-19 fear, SteelMint’s weekly assessment showed.

The key factors are:-

• Higher cost: The scrapped ships prices remained high & stood at around $350/LT (containers) as most of the end-buyers are in wait & watch mode.
• Slowdown of dismantling process: It was learned that the demolition of ships slowed down as only 50% plots were operational i.e 70 in total.
• Availability of tonnage: Most of the buyers already have good tonnage. So, now they are looking for vessels at lower rate.

Amid the deteriorating situation all across the globe due to COVID-19, Indian buyers choose to remain silent and are in a watchful state after the bullishness.

India’s local steel prices reportedly rise by around $10/t. Along with this, no major deals of scrapped ships from Alang port have been reported this week. Indian currency also declined to INR 73 against US dollar over unprecedented market trends.

• The prices of ship breaking stood at $350/LT for Containers, $320/LT for Dry bulk and $340/LT for Tanker.
• The total tonnage reported last week in the Alang port was at 104,883 LDT.
• Decommissioned Centaur-class aircraft carrier of the Indian Navy- INS Viraat has beached the Alang coast in Gujarat for dismantling. The vessel had served the Indian Navy for 29 years before being decommissioned in 2017.

Bangladesh

Unsurprisingly, no new sales happened this week, with vessels being diverted to higher priced locations. Also, end-users are looking for an opportunity to secure market tonnage at much lower rates.

• The prices were more or less firm and stood at around $350/LT for Tankers, $360/LT for Containers & $330/LT for Dry Bulk.
• The total tonnage reported last week in the Chittagong port was at 51,630 LDT.

Pakistan

A majority of the aggressive local recyclers with L/C limits for larger LDT tonnage booked a few vessels this week.

• The prices of containers stood at $370/LT, $340/LT for Dry Bulk & $360/LT for Tankers.
• The total tonnage reported last week in the Gadani port was at 22,803 LDT.