Imported ship breaking suppliers turn towards Bangladesh on attractive prices
...
Ship breaking suppliers are more inclined towards dealing with Bangladesh amid active demand & better prices than in India due to limited demand. Few deals reported for Bangladesh & Pakistan, while prices in India dropped by $10/t w-o-w with no fresh deals.
Bangladesh
The Chattogram buyers are competing with Pakistan due to unavailability of non-green vessels. Also, no major change was seen in the annual budget last week related to tax reforms for the ship breaking industry.
Two PCTC units from Korean owners deal concluded.
- GLOVIS PHOENIX (14,447 LDT) at $314/LT.
- GLOVIS PRIME (14,498 LDT) at $314/LT.
-- The price assessment for Bangladesh stood firm at $310/LT for Containers, $290/LT for Dry bulk and $300/LT for Tanker.
-- The total tonnage reported last week in the Chattogram port was 129,371 LDT.
India
Over deteriorating situations all across the globe due to pandemic, Indian local steel prices also reportedly dropped by around $15-26/t w-o-w. This has affected deals for imported ship breaking as no fresh bookings reported.
Also it is assessed that ship owners and cash buyers began to divert their tonnage away from Alang shores over good prices in the Pakistan & Bangladesh market as prices from Indian market sank below the $300/LT mark, for the first time since the ship recycling recession of 2015.
-- Indian currency also declined sharply to near INR 76 against the US dollar over unprecedented market trends.
-- The prices of ship breaking stood at $295/LT for Containers, $275/LT for Dry bulk and $285/LT for Tanker, dropped by $10/t w-o-w.
-- The total tonnage reported last week in the Alang port was at 187,174 LDT.
Pakistan
The nation emerged with little buying interest as few deals from Gadani port were reported this week, however no confirmation yet.
-- The prices of containers stood at $315/LT, $295/LT for Dry Bulk & $305/LT for Tankers.
-- The total tonnage reported last week in the Gadani port was at 53,524 LDT.
