South Asia: Imported scrapped ships’ offers rally by up to $30 w-o-w

Ship breaking prices in Asian markets saw an uptick of $5-30/LT. The prices for Bangladesh increased sharply by $30/t, while the same for India & Pakistan marked a hike of $20/t, w-o-w, as per SteelMint’s weekly assessment.

Bangladesh

Bangladesh ship breaking prices surged by $30/LT on a w-o-w basis. Demand of scrapped ships increased among the cash buyers. The price-controlling cartel formed in Chittagong has dissolved. Chattogram remained the top priced market in the industry with sales of several larger LDT VLOC reported.

• The prices stood at around $410/LT for Tankers, $430/LT for Containers & $400/LT for Dry Bulk.
• The Berge of Singapore VLOC BERGE LHOTSE (38,832 LDT) was concluded at $420/LT, basis an ‘as is’ Singapore delivery and with 350 t of bunkers remaining on board.
• The total tonnage reported last week in the Chittagong port was 30,730 LDT. A tanker namely Bosporus (14,205 LDT) was beached at the port.
• The total quantity breached in the port of Bangladesh was recorded at 57,241 LDT (9 ships) in Nov ’20, recording a fall of 71.24% m-o-m as against 199,055 LDT in Oct ’20.

India

Our assessment showed an improvement in imported ship breaking offers in India. The offers stood at $400/LT for containers, $380/LT for Dry bulk and $390/LT for Tanker. India is still the best placed recycling destination to secure any HKC green tonnage

• The Indian Rupee remained firm considerably, trading around INR 73.9 as against the U.S. Dollar.
• The total tonnage reported at the Alang port last week was at 51,551 LDT. Two Chemical Tankers arrived at the port, namely Sulphur Garland (2,414 LDT) & Colors (3,552 LDT).
• The total volume of ships demolished in the Alang port was reported at 150,934 LDT (17 ships) in Nov ’20 as against 151,267 LDT in Oct’20.

Pakistan

In terms of pricing, Gadani market remained behind Bangladesh, as the latter stood as the top recycling market, this week. Many favored larger LDT units (including Capes and VLOCs) have gone to Bangladesh following the breakup of the cartel there. This has left Pakistan empty handed for the week.

• The scrapped ship prices increased by $20/LT & stood at $410/LT for containers, $390/LT for Dry Bulk & $400/LT for Tankers.
• Total tonnage reported at the Gadani port last week was 65,736 LDT. Three tankers were beached at the port namely Karadeniz Powership Enis Bey (2,361 LDT), Mazaya 6 (1,286 LDT)) & Sriracha Eagle (15,630 LDT).
• The import volume decline to 121,796 LDT (11 ships) on m-o-m in Nov ’20 as against 164,554 LDT in Oct ’20.