South Asia: Ship Demolition Volume Slump 50% in Q3 2019

In the third quarter of 2019, a total of 75 ships were demolished in India, Bangladesh & Pakistan, according to provisional data maintained by SteelMint stats.

The total quantity beached in the port of Alang, Chittagong & Gadani was recorded at 642,029 LDT in Q3 CY19, recorded a fall of 50.69% Q-o-Q as against 1,302,043 LDT (133 ships) in the second quarter. Also on yearly basis the same plunged by 10 ships in Q3 CY19 compared to 85 ships in Q3 CY18.

Bangladesh, one of the largest ship recycler who majorly grabs the position of top buyer of ship breaking scrap has sharply fall in Q3 CY19. The total number of ship demolish in the Bangladesh Chittagong port was marked at 200,594 LDT (24 ships), down by 76.36% Q-o-Q. Meanwhile, in the last quarter it stood at 848,540 LDT with 71 number ships.

Furthermore, Bangladesh steel market has turned very active for bookings of bulk vessels of ferrous scrap. Inline total scrap imports in the Q3 CY19 stood at 415,312 MT, surge by 48.53% Q-o-Q as against 279,605 MT scrap reported in Q2 CY19 by Bangladesh.

In India, the total volume of ship demolished in the Alang port was marked at 399,520 LDT (41 ships), down by 4.48% Q-o-Q in Q3 CY19. Meanwhile, in the second quarter it was at 418,297 LDT with 54 number of ships.

Meanwhile, imports by Pakistan rise slightly to 10 ships with 41,915 LDT Q-o-Q in Q3 CY19 as against Q2CY19 with 8 ships (35,206 LDT).

Coming to the part of pricing sector in the Q3 CY19, Bangladesh offers reached at USD 389/LT for Tankers and USD 398/LT for Containers on average basis, plunged by USD 50/MT respectively as against Q2 CY19.

Similarly, prices fell by USD 60/LT (Q-o-Q) in India to USD 370/LT for Tankers and USD 380/LT for Containers. Inline, Pakistan scrapped ships prices also drop by USD 40/LT in Q3 CY19 as against last quarter.

While in recent week, Bangladesh market retreating once again, as many of the buyers have booked themselves with good tonnage over the last couple of weeks. And fresh offers stood at USD 380/LT for Containers and USD 370/LT for Tanker.

However buying activity of scrapped ships in India slowdown with lower numbers. Inline Rupee trade nearly INR 71 against the US Dollar. Prices declined by USD 10/LT W-o-W & stood at USD 360/LT for Containers and USD 350/LT for Tanker.

In Pakistan, trade activity remained inert, no incoming tonnage at Gadani port. The prices for containers reached at USD 370/LT, Dry Bulk at USD 350/LT & Tankers at USD 360/LT.

Qty in LDT
Source : SteelMint Stats