South Asia: Scrapped Ship Imports Decline 33% in CY19
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Bangladesh remains the top buyer in South Asia for scrapped ships with 61% share followed by India with share of 36% & Pakistan with 3% share.
In the year 2019 (Jan-Dec'19), a total of 444 ships were demolished in India, Bangladesh & Pakistan, according to provisional data maintained by SteelMint stats.
During Jan-Dec'19 (CY19), the total quantity breached in the port of Alang, Chittagong & Gadani stood at 4,024,588 LDT, recording a decline of 32.79 Y-o-Y as against 5,988,497 LDT (529 ships) in CY18.
Bangladesh remained in the top buyer for ship breaking scrap in CY19 with 231 numbers of ships; it is observed that the nation has imported about 2,458,328 LDT in volumes, surge by 1% Y-o-Y which includes dry as well as wet containers.
Further in India, 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).
Meanwhile imports in Pakistan fell sharply to 33 ships with 127,539 LDT Y-o-Y in CY19 as against CY18 with 80 ships (1,256,953 LDT).
-- The major reasons attributed to the sharp fall in vessel import numbers in Q3 are the new taxes imposed in Bangladesh's annual budget implemented from July'19, as well as the oversupply in the surplus imports in the preceding quarters. Coming to the pricing, in CY19 the average prices in Bangladesh stood at USD 410/LT for Tankers and USD 420/LT for Containers, lower by USD 30/MT respectively as against CY18. As of now the Bangladeshi market is slightly subdued as many of the buyers have booked themselves with good tonnage. Meanwhile latest offers stand at USD 385/LT for containers and USD 375/LT for Tanker & Dry Bulk at USD 365/LT.
-- While, Indian market is the most active and the Alang based buyers bagged a majority of sales. As this year most of the supply of vessels into India has primarily been green units in line the more yards working to get their HKC certificates. On yearly basis in CY19, Indian scrapped ships offer reached USD 400/LT and USD 410/LT for Tankers & Containers respectively as against USD 435/LT & USD 445/LT in CY18. And in recent weeks, prices remain strong & stood at USD 395/LT for Containers and USD 385/LT for Tanker.
-- In Pakistan, trade activity remained inactive in CY19, with a catastrophic currency depreciation and declining steel prices that forced the Gadani market into a virtual closure. Recently. the prices for containers reached at USD 375/LT, Dry Bulk at USD 355/LT & Tankers at USD 365/LT.
