Shipbreaking in subcontinental markets have witnessed a surge in demand and prices in the prior week. Recyclers have exhibited an increased appetite for tonnages. Meanwhile, COVID-19 cases are on the rise across the subcontinent and the looming fear of another lockdown could hamper logistics and supply.
Recyclers and traders are seeking tonnages amid rising demand for scrap from the mills in North and West region, coupled with tight supply. The prices of ship plates and HMS are firm.
The Indian government plans to regulate freight charges imposed by shipping firms for export, import and local transportation and has added this new provision in the draft Merchant Shipping Bill, 2020 prepared by the Ministry of Ports, Shipping and Waterways that seeks to repeal and replace the Merchant Shipping Act, 1958 and the Coasting Vessels Act, 1838.
On the sales front, a deal for non-ferrous rich vessel “Taihua Spirit” with tonnage 5,677ldt was concluded at $760/lt ldt along with 1,100mt of solid stainless Avesta 2205 in addition to 400mt of bunkers on board.
Also, Petrobras auctioned off their tanker “Cartola” with tonnage 22,870/ldt at net $388/lt ldt on “as is” basis, Galang, Indonesia delivery.
Pakistan continues to secure more tonnages. The melting scrap prices in the domestic market have increased by $45/mt, while prices for ship plates remained unchanged.
With onset of winters and year-end holidays, the Pakistani recyclers are likely to take a back seat as foreign trade businesses tend to remain low.
A deal for general cargo vessel “Sarah F” with tonnage 4,462ldt was concluded at $389/lt/ldt along with a bulker “Silver Shark” with tonnage 5,636ldt at $390/lt ldt.
After the recently formed cartel collapsed, the shipbreaking prices witnessed a significant increase by at least $20/ldt.
Moreover, the local steel plates and HMS prices also improved by $34/mt. Recyclers are looking for more tonnages and are ready to book at competitive prices in line with increase in demand from the domestic market.
The prices for imported scrap jumped by almost $20/mt keeping the steel prices firm by $25/mt. Furthermore, the recycling activity is likely to increase in Turkey amid rise in the number of EU-approved yards.
The Turkish Lira depreciated to TRY 7.85 against the US dollar.