South Asia: Ship breaking buyers turn active, prices rally

Ship breaking prices in South Asian markets have increased by $10-20/LT w-o-w on improved trade activities amid increased tonnages.

India

SteelMint's weekly price assessment showed, increased in imported ship breaking offers by $10/LT w-o-w in India & stood at around $360/LT for containers, $330/LT for Dry bulk and $350/LT for Tanker. The Indian Rupee against the US dollar stood near about INR 74.5.

Demand for ship breaking scrap in Indian market remained well over increased prices of substitute materials & three vessel deals were traded at decent prices.

• China Navigation sold two units for class NK (or LR) only HKC recycling on en bloc basis
  
  
• KWANGSI (9,439 LDT), a General Cargo at $325/LT.
  
  
• MELANESIAN CHIEF (5,889 LDT), a GC Container at $325/LT.
  
  
• ZAGORA (5,751 LDT), a Costamare Container at $360/LT.
  
  

The total tonnage reported in the Alang port last week was at 100,000 LDT. One Vehicle Carrier beached in the port namely Caribbean Highway (13,107 LDT).

In Jul '20, India registered a growth in scrapped ship imports with 339,707 LDT, up by 39.3% m-o-m which is 2.5-year high. Prior to this, the highest ever import volume was recorded in Jan'18 at 391,726 LDT.

Bangladesh

Demand of scrapped ships among cash buyers was low. And in recent weeks the Bangladesh buyers remain behind India and Pakistan.

• The prices in Bangladesh increased by $20/LT w-o-w & stood at $350/LT for Containers, $320/LT for Dry bulk and $340/LT for Tanker.
  
  
• The total tonnage reported last week in the Chittagong port was at 13,855 LDT.
  
  

The total volume of ships demolished in the Chattogram port was marked at 190,082 LDT (8 ships) in Jul '20, down by 39.2% m-o-m compared with 312,856 LDT in Jun '20.

Pakistan

The country still stands in the top position this week, however due to the holiday season, there has been a slowdown in the supply of (non-green) vessels.

The prices in Gadani increased by $10/LT w-o-w & stood at $370/LT for Containers, $340/LT for Dry bulk and $360/LT for Tanker.

• A small bulker was traded, namely HAMOUDI (3,581 LDT) at $355/LT.
  
  
• The total tonnage reported in the Gadani port, Pakistan last week was at 38,942 LDT, one General cargo arrived in the port namely Nazlikiz (3,546 LDT).
  
  

The imports of scrapped ships declined by 14.8% in Jul '20 to 87,254 LDT with 9 ships m-o-m as against 102,448 LDT in Jun '20.