Asia's Ship Demolition Volume Increase by 4% in Q2 2019
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In the second quarter of 2019 (Apr-Jun'19), a total of 133 ships were demolished in India, Bangladesh & Pakistan according to provisional data maintained by SteelMint Stats.
In Q2 CY19 (Apr-Jun), the total quantity breached in the port of Alang, Chittagong & Gadani stood at 1,302,043 LDT, recording rise of 4% Q-o-Q as against 1,251,889 LDT (134 ships) in Q1 CY19.
Bangladesh remained in the top buyer for ship breaking scrap in Q2 CY19 with 71 numbers of ships; it is observed that the nation has imported about 848,540 LDT in volumes, lower by 9.24% Q-o-Q which includes dry as well as wet containers.
Further in India, the total volume of ship demolished in Alang port was marked at 418,297 LDT (54 ships), up by 39% Q-o-Q in Q2 CY19 in comparison to last quarter at 300,738 LDT with 42 number ships (Q1 of CY19).
Meanwhile imports in Pakistan rose slightly to 8 ships with 35,206 LDT Q-o-Q in Q2 CY19 as against Q1 CY19 with 7 ships (16,274 LDT).
-- Coming to the pricing, in Q2 CY19, Bangladesh offers reached at USD 440/LT for Tankers and USD 450/LT for Containers on average basis, lower by USD 5/MT respectively as against Q1 CY19. As of now in Bangladesh most of the yards remain stuffed with tonnage, and were awaiting the budget announcement. Meanwhile latest offers stood at USD 430/LT for containers and USD 420/LT for Tanker.
-- While in India activity of scrapped ships remained in a sudden state this week with constant monsoon rains & flooding. Prices remain firm & stood at USD 425/LT for Containers and USD 415/LT for Tanker. However no major changes seen in the tax structure for Ship recyclers in the new budget.
-- In Pakistan, trade activity remained inactive & inert state, the Pakistani Rupee has (overall) suffered catastrophic depreciation's, have seen 20% of its value wiped off within the last 12 months alone. The prices for containers reached at USD 420/LT, Dry Bulk at USD 400/LT & Tankers at USD 410/LT.
Ship demolition, Q1 Vs Q2 (2019)
| CY 2019 | India (Alang) | Bangladesh (Chittagong) | Pakistan(Gadani ) | |||
| No.of Ships | Qty in LDT | No.of Ships | Qty in LDT | No.of Ships | Qty in LDT | |
| Q1 | 42 | 300,738 | 85 | 934,877 | 7 | 16,274 |
| Q2 | 54 | 418,297 | 71 | 848,540 | 8 | 35,206 |
Source: Provisional data
