Markets in Alang were in range-bound last week though with auto sector picking momentum, positive sentiments prevailed among shipbreakers and HMS scrap traders.
The number of COVID-19 cases in the subcontinent is not showing signs of abating with India recording close to 80,000 cases a day recently.
Bangladesh’s market is gearing-up for the fourth quarter resurgence with couple of big offers for vessels. Prices of ship plates has also improved from the previous week.
Markets in Pakistan are firm and most of the yards are occupied with tonnages. Turkish market improved for the second consecutive week with prices remaining largely unchanged
Markets in Alang stepped back in to action in the recent weeks. Prices of ship plates remained volatile last week but rose on Monday by Rs700-800/mt ex-Alang.
Majors mills in India have decided to increase their finished steel prices by Rs3,000/mt which has created a positive sentiment among shipbreakers. Ship recycling at Sachana in Gujarat, where small and mid-sized tonnages are dismantled – is expected to resume soon.
INS Viraat, the Indian aircraft carrier sold earlier this month, is heading towards Alang for its dismantling. A Petrobras tanker named NEUSA with 5,914ldt was sold at $206/ldt recently for green recycling.
Yards in Chattogram are currently digesting the large tonnages delivered so far. The prices of ship plates in the domestic market have started to improve. Though no new bookings took place this week, there were a lot of enquiries in the lower price band. Recyclers may get active by mid-September for booking new vessels when the heavy rains will subside.
Pakistan remained the top buyer, though buying has slowed as most of the yards at Gadani are now full. Recyclers, however, continued to bid at highest prices for the recycling ships.
In Pakistan most of the mills have adopted the EAFs technology, hence demand for HMS scrap is expected to increase. The country is also attracting foreign direct investment in its infrastructural sector which will boost the demand for steel bars and coils.
Prices from Aliaga remained steady in the last week although Turkish Lira weakened against US dollar. Imports market has been improving though another lockdown is expected due to second wave of COVID-19 infections. Demand from the local steel mills is expected to remain firm.
A container vessel of approx. 25,000 LDT has arrived to Aliaga, Turkey at an EU-approved yard for recycling. Local markets are witnessing low activity, but first two weeks of September will bring out a clearer picture.