Markets - Recycling focus on Bangladesh

Feb 01 2019


Since the start of 2019, the declines witnessed across the Indian sub-continent markets have shown no signs of abating.

Increasingly desperate cash buyers have finally started to offload their hefty existing (and expensive) inventories, GMS said in its weekly report.

As a result, Bangladesh has started to rapidly fill up with tonnage and with India and Pakistan positioned some way below, the supply into Chittagong is expected to continue as long as demand/available space remains.

The results of the mini-budget announced in Pakistan have been distinctly underwhelming, with, as expected, very little material change to report and it is hoped that this could present a long overdue bounce back from Gadani in the near future.

Meanwhile, the prospects in India remain bleak with further volatility/declines in local steel plate prices, in addition to an evaporating demand. This has led to a rapidly disappearing rate of local offers, as Alang buyers wait and watch the flow of tonnage, in an attempt to grab a green bargain or a lower priced offshore asset.

Much of the focus has therefore remained on Bangladesh, where prices remained far firmer, to pick up the slack for yet another week and a whole array of cash buyer tonnage was committed to a dwindling array of capable (in terms of ready L/Cs) and open (in terms of plot capacity) end buyers.

Finally, the Turkish market continued to fester away amidst stagnating local steel plate prices, a relatively unchanged Lira/ US dollar value, and a lack of incoming ships, which has pushed local recyclers to adopt a Bangladeshi strategy in an attempt to revive the Turkish ship recycling sector.

Will it work? GMS asked.

Brokers have reported the sale of the large 1998-built Aframax ‘Scarlet’ to undisclosed interests for $420 per ldt.

Finally, the IMO has reported that Turkey has ratified the Hong Kong Convention.

HE Ümit Yalçin, Ambassador and Permanent Representative of Turkey to the IMO, met IMO secretary general Kitack Lim to deposit the instrument of ratification to the treaty on 31st January.

Turkey became the seventh state to become a Party to the convention. The treaty will enter into force 24 months after ratification by 15 states, representing 40% of world merchant shipping by gt, and a combined maximum annual ship recycling volume not less than 3% of their combined tonnage.

Today, the seven contracting states represent more than 20% of world merchant shipping tonnage, the IMO said.

 



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May 2019

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