South Asia: Imported ship breaking prices remain stable

Ship breaking prices maintained stability with few deals being reported. Buyers from Pakistan actively booked few cargoes, while no major deals were reported through the Indian & Bangladeshi buyers.

India

SteelMint's weekly price assessment showed a stability in imported ship breaking offers. The offers stood at $350/LT for containers, $320/LT for Dry bulk and $340/LT for Tanker.

India has continued to miss out on most of the deals to its subcontinent competitors. Most of the ships diverted to nearby countries & Indian ship recycling industry is also facing tough competition from neighbouring countries which are offering more competitive prices for vessels and are enjoying better domestic steel prices like Pakistan dealing containers at $370/LT.

• The Indian Rupee too has firmed considerably, trading into the low INR 73 against the U.S. Dollar.
  
  
• The total tonnage reported in the Alang port last week was at 85,493 LDT. One Fishing Vessel beached in the port namely Bazhenovsk (3,944 LDT).
  
  
• The total volume of ships demolished in the Alang port was reported at 75,217 LDT (6 ships) in Sep'20 as against 167,715 LDT with 17 number ships in Aug'20.
  
  

Bangladesh

Bangladesh ship breaking prices remained stable on a w-o-w basis. Demand of scrapped ships among cash buyers was low. And in recent weeks the Bangladesh buyers remain behind India and Pakistan.

The recently formed Bangladeshi cartel has had a bit of a frustrating few weeks, as it has failed to secure any vessels of note, even losing out on one of their favored VLOCs to their Gadani competitors.

• The prices were more or less firm and stood at around $350/LT for Tankers, $360/LT for Containers & $330/LT for Dry Bulk.
  
  
• The total tonnage reported last week in the Chittagong port was at 62,180 LDT. An OBO arrived on 9th Oct in the port namely Janice N (38,107 LDT).
  
  
• The total quantity breached in the port of Chittagong (Bangladesh) was recorded at 28,876 LDT (7 ships) in Sep'20, recording a fall of 60.6% m-o-m as against 73,223 LDT in Aug '20.
  
  

Pakistan

The country still remains top-placed recycling market for another week. It has managed to secure some deals with best prices across the subcontinent. The prices of containers stood at $370/LT, $340/LT for Dry Bulk & $360/LT for Tankers.

• A VLOC converted from VLCC was traded, namely BERGE KIBO (37,363 LDT) was finalized for a whopping USD 376/LT LDT basis an 'as is' Labuan delivery.
  
  
• Total tonnage reported in the Gadani port last week was at 36,007 LDT. A wood carrier arrived on 8th Oct in the port namely Steller Express (8,934 LDT).
  
  
• The import volume rose to 205,189 LDT (18 ships) on m-o-m in Sep'20 as against 67,495 LDT in Aug '20.