Ship Breaking Offers Rally in South Asia

As per update, ship breaking prices in global market have seen further improvement over increased steel prices.

SteelMint's weekly price assessment showed, increased in imported ship breaking offers by USD 5/MT to Bangladesh & stood at around USD 370/LT for Tankers, USD 380/LT for Containers & USD 360/LT for Dry Bulk. The prices surge by USD 5/MT respectively as against Week-46.

In the week, Bangladesh market has been the most active and the Chattogram (Chittagong) based buyers bagged a majority of the recent market sales across all subcontinent. As per GMS report, two tankers were traded, namely ORCHIDS (8437 LDT) at USD 400/LT & WINDSOR (9574 LDT) at USD 405/LT. Inline the vessel prices improved over increased domestic steel plate offers in Bangladesh by around USD 20/MT W-o-W.

Also, positivity seen in Indian market as the government has approved the proposal of the 'Recycling of Ships Bill, 2019', which will finally see all yards in India operate in accordance with the standards of the Hong Kong Convention, once the Bill is signed and approved by the parliament.

However with falling Indian Rupee against the US dollar I.e INR 72, trade activities of scrapped ships in India remained cautious as buyers waiting for stability in the market. The prices up by USD 5/LT W-o-W & stood at USD 375/LT for Containers, USD 355/LT for Dry bulk and USD 365/LT for Tanker.

Meanwhile in Pakistan trade activities remained average and participants are trying to increase it and one deal reported to be concluded for Greek owned bulker ARISTIMO (8,147 LDT) at around USD 380/LT. Thus with this deal, the imported prices to Pakistan being inclined by USD 5/LT and stands at USD 370/LT for containers, USD 350/LT for Dry Bulk & USD 360/LT for Tankers.

Source : GMS