Market condition in subcontinental shipbreaking industry remained stable even as COVID-19 situation in India, Bangladesh, Pakistan and Turkey is still dictating operations.
GMS Weekly report said market conditions in the subcontinent are closely associated with the spread of COVID-19 within the European region. With Coronavirus on the rise, France announced a new curfew in Paris and other major cities.
The supply of oxygen is improving in Alang as number of COVID-19 cases in India is gradually coming down. Most of the yards in
Bangladesh are empty and demand for finished steel is subdued. Pakistan prices for ship plates remained stable the previous week, and demand for finished steel is weakening. Local ferrous scrap market in Turkey is stable.
Prices for ship plates in Alang remained firm the previous week and the supply of oxygen has somewhat become smooth with situation expected to normalise after 25-30 days.
The government announced that DG Shipping in India will now be the national authority for shipbreaking and will monitor all the activities related to ship recycling. A new office will be set up in Gandhinagar near Alang.
In accordance with the Recycling of Ships Act 2019, all operational yards in Alang will have to adopt sustainable and green recycling practices as per HKC compliance.
Yards are looking for small tonnages as demand from the domestic market is still in range-bound.
The prices offered by the cartels is not attracting many buyers, but it definitely managed to prevent some vessels from being resold locally above the agreed threshold.
There is sustained demand for the tonnages and Bangladesh Ship Breakers Association (BSBA) cartel is looking out for available tonnages but are unable to purchase what is required to cater to end-buyers.
Despite hike in COVID-19 cases, the economy in Bangladesh has returned back to normal.
A predominantly settled pattern of buying was witnessed in Gadani after a sale of one VLOC was reported last week. For the fourth consecutive week, the local market remained stable. The demand for finished steel is slowly declining which could impact prices of raw material.
The recyclers would need two more months to utilize the available tonnages that have been beached, hence yards are willing to buy more vessels but the cash buyers don’t have many vessels in their hands to offer this region.
Local scrap prices in Turkey remained stable despite relatively weaker Turkish Lira. As per the local yards, prices could remain steady due to positivity in steel import market.
No new vessels arrived at Aliaga shores. Importation of containerized HMS has gone up by $5/mt to $287/mt. COVID-19 cases across the region are stable.