All shipbreaking locations in the sub-continent have started to post positive returns this week despite low demand for finished steel from the end users in the second quarter coupled with rising COVID-19 cases, according to a GMS report.
Pakistan remained the top buyers this week with prices being $25-$30/ldt ahead of its competitors. Indian market is recovering and Bangladesh is nearing Pakistan’s buying level. However, there is still shortage of tonnage.
The weeklong Eid holidays in Pakistan, Bangladesh and Turkey made way for India to pick up remaining market vessels for sale.
However, only HKC green vessels are booked by Indian yards. Uncertainty due to COVID-19 is still an major factor. Turkey’s market showed signs of improvement this week with vessel prices reaching $200/ldt.
Bangladesh is trying to secure few tonnages as its domestic demand is gradually increasing, however, all ship owners are only eyeing the Pakistani market. EID holidays have slowed down the activity for a week despite dearth in tonnage. No market sales were reported this week.
Shipbreaking rolling prices this week rose by Rs200-300/mt, as rolling mills refilled raw materials inventory amid tight supply of domestic ferrous scrap. The index for 4Ani rose by Rs200/mt ex-Alang on Friday compared to July 27. The index for 8Ani rose by Rs150/mt in the same period.
India has been successful to book an HKC green tonnage lately. Steel prices have started to improve, and losses have narrowed amid decent demand from the local market.
Japanese vessel KAMIKAWA MARU with 7,327ldt was finalized to Indian buyers for HKC recycling for $232/ldt.
Pakistan remained the top buyer for yet another week as one more booking was confirmed to the local recyclers.
Vessel named Green Harvest, as woodchip carrier with 10,639ldt has been booked at $358/ldt. This week is expected to be quiet amid Eid holidays. Post-holidays, the picture regarding price trend is not clear, as Pakistan market has never been a sustained one. Vessel buyers are still optimistic with the current trend.
In Turkey, steel prices have reportedly increased last week, scrap imports have gone up considerably, and price of vessels has improved reaching $200/ldt levels. Two cruise vessels owned by Carnival have arrived lately.
Lira has weakened against the US Dollar and even breached the TRY 7.0 mark this week. Despite the overall positivity, if the local currency continuous to depreciate against US dollar, the Turkish market may move southwards in coming weeks