Market conditions in the subcontinental shipbreaking markets remained quiet amid fear of second wave of COVID-19 and subsequent lockdown in countries like the UK, Germany, Greece, France, Austria and several others. In addition, the Baltic Exchange’s main sea freight index dropped for the consecutive third session as the freight rates across all the vessels’ segment declined.
Prices for ship plates in Alang remained mixed the prior week leaving the end-buyers hesitant to make any fresh deals in the market.
Also, mills in Gujarat went on strike demanding loading charges of Rs100/mt levied by the shipbreakers amid shortage of labour to be waived off, which hampered the trades. However, import of containerized HMS remained healthy during the week.
Prices and demand in the Chattogram market remained unchanged and the recently formed cartel is influencing the price of vessels available for sale. The cartel is unable to satisfy the increased appetite of recyclers in the region. Local recyclers are likely to opt for private deals if the situation persist.
Amid shortage of containers, a local steel mill bought a deep-sea cargo, comprising HMS 1&2 (80:20, shredded and plate and P&S scrap at an average price of $321/mt cfr from US.
The prices of ship plates and HMS in the domestic market declined on the back of sluggish demand for finished steel. Recyclers expressed uncertainty pertaining to the future amid tight supply of scrap.
A vessel named ABK Trader, 6011ldt Handysize Bulker, was sold to Gadani Recyclers worth $392/lt ldt.
No new vessel has arrived at the ship recycling facilities as there is already a large amount of tonnages beached in Turkey which needs to be cleared first and are unable to consider any units until 2021. Fear of lockdown in Europe as well as weak steel demand looms on Turkey’s scrap supply. On November 3, the Turkish Lira declined to TRY8.034 against the US dollar.