Subcontinental shipbreaking market has started to pick up pace amid rising finished steel, coils and scrap prices supported by global cues. In addition to this, 15 Southeast Asian Nations (ASEAN) have signed the Regional Comprehensive Economic Partnership (RCEP), a historic free trade agreement which could influence the shipping industry.
The prices of HMS as well as finished steel are on an uptrend amid gradual rise in demand. Indian steel mills have raised prices by Rs1,500/mt. Mills preferred to stock material in an anticipation of rise in scrap prices in the near term.
On the sales front, a deal for LPG from Korean Sellers named NAMHAE GAS with tonnage 2,744ldt concluded on ‘as is’ basis worth $275/ldt.
The prices of ship plates and HMS in the domestic market have increased by 15pc on ex-yard basis over the prior month. As the recently formed cartel finally having collapsed, the cash buyers have access to a free market to offer any available tonnage once again. Bangladesh is likely to emerge as the driving force in the Indian subcontinent.
The prices of HMS and ship plates continue their downtrend due to which mills are sourcing shredded HMS scrap for the consumption and are preferring to stock winter inventory. Market sentiments look positive as the appetite to book more tonnages is evident among ship recyclers.
Markets sentiments look bullish. The HMS and cfr Turkey prices have jumped to $333/mt levels. Turkish mills look to stock inventories to sustain until February 2021. Turkish Lira has gained ground against foreign currencies during last week. It improved 10.2pc against the US dollar by dropping to TRY7.6920. A vessel has arrived in Aliaga a week prior. The country has imposed partial lockdown on the back of rising COVID-19 cases.