Scrapped ship imports to Asian market – India, Bangladesh & Pakistan have increased by around 35% M-o-M in the first month of 2020, as per the data maintained by SteelMint.
In Jan’20, the total quantity beached in Asia (Alang – India, Gadani – Pakistan & Chittagong port in Bangladesh) stood at 410,179 LDT as against 303,658 LDT in Dec’ 19.
A total volume of 55 ships were demolished in India, Bangladesh & Pakistan in Jan ’20.
India: Alang – Gujarat, has registered a growth in imports of scrapped ships in Jan’20 and the volume rose by 57.4% M-o-M, as per customs data maintained by SteelMint.
Participants beleive that constant hike in Indian domestic ship breaking scrap prices, led to surge of scrapped ships import. As per SteelMint’s assessment, ship breaking scrap prices in Alang surged by INR 2,500-3,000/MT (USD 35-42) from 15th Dec’19 to 10th Jan’20. Thus, the importers more inclined to book ships as prices was steady for imported material.
As per data, scrapped ship imports in India were recorded at 217,740 LDT in Jan’20 as against 138,316 LDT in Dec’ 19. Inline on a yearly comparison, the ship breaking import volume rise sharply by 129% in Jan’20 as against 95,148 LDT in Jan’19. The total number of ships demolished in Alang were 32, increased by 18 on monthly basis in Jan’20,
Bangladesh: Scrapped ship buyers in Chittagong port remained at the top in South Asia with 61% share in 2019. In Jan’20, the nation’s scrapped ship imports surged by 27.5% to 180,564 LDT with a total of 18 ships, as against 141,570 LDT (19 ships) in Dec’ 19.
Chittagong recyclers are slightly subdued in current duration as many of the buyers have booked themselves with good tonnage including the largest LDT units and several VLOCs have been sold to Bangladesh buyers.
While on a yearly comparison, the Bangladesh’s ship breaking import volumes have decreased by 51% in Jan’20 as against 368,651 LDT in Jan’ 19.
Pakistan: Gadani port stood at third in the ship recycling market as it had imported 11,875 LDT with 5 number of ship in Jan ’20. As per assessment, scrapped ships import in the nation declined by 50% M-o-M in Jan’20 as against 23,772 LDT in Dec’ 19.
In Pakistan, trade activity remained on lower side as domestic buyers are constantly confused whether to offer or not. However, only the smallest LDT vessels were reported in the month.
While on a yearly comparison, the nation’s ship breaking import volumes have increased sharply in Jan’20 as against 1,276 LDT in Jan’ 19.
Coming to the global market, the scrapped ship prices remained flat & the demand is low due to coronavirus outbreak.
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