Imported Ship Breaking Prices Remain Stable; Indian Buyers Turn Active

Indian ship breaking market has observed stability in terms of prices this week with a couple of deals being concluded to western India.

Ship breaking prices in India stood at USD 410/LT for Containers, USD 390/LT for Dry bulk and USD 400/LT for Tanker. Further as per sources, demand in Indian market remained at a decent level as few deals were concluded to Alang, western India based buyers.

Sources reported that, two vessels were traded, namely AMUR (3,861 LDT) a Russian owned General Cargo at USD 416/LT & ULA (8,040 LDT) a Bulk Carrier at USD 388/LT. Meanwhile, the Indian Rupee again weaker as against the US dollar I.e near about INR 71. The total tonnage reported in the Alang port, India last week was at 58,937 LDT.

According to the provisional data, it is observed that the total volume of ship demolished in Alang port was marked at 1,438,721 LDT (180 ships), fall by 37% Y-o-Y in CY19 in comparison to last year at 2,284,340 LDT with 251 number ships (CY18).

Furthermore, in Bangladesh, buyers are competing as domestic market has slightly slowed down. Thus, the local buyers are looking scrapped ships at comparatively lower rate. Also, the supply of tonnage is good for all markets. The price assessment for Bangladesh stood at USD 400/LT for Containers, USD 380/LT for Dry bulk and USD 390/LT for Tanker. The total tonnage reported in the Chittagong port, Bangladesh last week was at 56,107 LDT.

Inline with this, Pakistan remains a way behind their competitors despite increase in supply. As of now no major changes seen in buying activities in the local market. The fresh offers of imported scrap to Pakistan is hovering at USD 390/LT for containers, USD 370/LT for Dry Bulk & USD 380/LT for Tankers. As per report, an oil/chemical Tanker name Hua Wei 7(2,371 LDT) arrived in the Gadani Port last week.