South Asia: Ship Breaking Prices Remain Stable in Recent Deals

As per assessment, ship breaking prices in global market remain at similar levels since last two weeks due to lower demand over weak global sentiments amid increased supply of vessels in major markets.

The weak demand is because of the cash buyers in several yards who are sitting in wait and watch mode rather than booking new tonnage. Inline, the coronavirus news from China has eventually affected the ship recycling markets.

In Bangladesh, the demand of ship breaking is down as local steel prices have declined by USD 5-10/MT. Inline, buying units of large LDTs are decreasing in scrapped ship market. However, one sale is reported for Chittagong based buyer.

As per sources, a bulker namely ABML GRACE (22,037 LDT) was traded at USD 376/LT. Further, the total tonnage reported last week to the Chittagong port (Bangladesh) was at 161,624 LDT. Thus, with this deal, the prices in Bangladesh stood at USD 390/LT for Containers, USD 370/LT for Dry bulk and USD 380/LT for Tanker.

As per market sources, a vessel was traded under HKC green recycling, namely SAVANNAH PEARL (10,979 LDT), a SMT owned General Cargo at USD 386/LT. The total tonnage reported last week in the Alang port, India was at 50,348 LDT.

Whereas in Pakistan, trade activity remained on lower side, as Gadani end users are not really serious to buy any new tonnage. The prices for containers reached at USD 380/LT, Dry Bulk at USD 360/LT & Tankers at USD 370/LT. The total tonnage reported last week in the Gadani port, Pakistan was at 10,190 LDT.