Global shipbreaking industry is showing positivity as numerous previously concluded deals were settled this week, according to the GMS weekly report.
Pakistan continues to lead as the sturdiest subcontinent location. Several bulkers and containers worth $340/LDT were purchased recently. On account of upcoming Eid holidays in Pakistan, Bangladesh and Turkey the market situation is expected to remain stagnant and stabilize going into the fourth quarter of the fiscal year. Many end-buyers have used the plummet in prices in all locations by over $100/LDT to their advantage by bargaining for lower scrap prices.
The Pakistan market recorded a jump in dry bulk and smaller container unit sales worth $340/LDT in the past few weeks.
SETUBAL (5,167 LDT), a container unit, was traded at $326/LT LDT.
Last week, India crossed the 1mn mark of reported COVID-19 cases forcing a re-imposition of a lock down by the government to curb the spread in cities like Mumbai, Pune, Chennai, Bangalore.
Shipbreakers expect the prices of domestic plates to drop from mid-July ti the end of August due to the onset of monsoons. Infrastructural projects may be affected by this.
The daily Davis Index for 10Ani declined by Rs700/mt ($9.3/mt) to Rs27,750/mt ex-Alang.
The index for 4Ani also declined by Rs500/mt to Rs 25,450/mt. The demand for HMS attachments and melting remained stable with the index rising by Rs25/mt to Rs22,275/mt ex-Alang.
India is the chief buyer of PCTC vessels and container units for the purpose of HKC green recycling.
Bangladesh remains in the second place after Pakistan with no market sale reported this week. However, in Chattogram local buyers have been inquiring about containers and the numbers and sentiments are expected to improve in the fourth quarter of this year.
Many Turkish recyclers demanded for units as steel plate prices improved by $5/mt, inducing local offerings to rise as well.
The arrival of 3 previously concluded containers were reported at the Aliaga port. The Turkish market expects no more sales for Aliaga till the end of July.