Recycling Resurgence: Overcoming Festival and Holiday Slowdown in India
Leading cash buyer for ships for recycling, Best Oasis in their weekly ship recycling report noted that, the festival and holiday caused a deceleration in recycling activities in India; this is anticipated to improve in the coming days. Regarding Pakistan, positive speculations continue to circulate regarding its ratification of the HKC, which appears to be an advantageous development. However, the LC issues are presently escalating in severity daily. Bangladesh appears to be in a state of turmoil, as economic instability and disturbance, in addition to significant challenges associated with LCs, have rendered it an unappealing destination. In contrast, Türkiye appears to be in a favorable position, as both domestic and imported goods have increased by USD 8.
The prominent steel mills in China have successfully mitigated the decline in profitability subsequent to June, following a lackluster performance during the initial five months. This improvement can be attributed to the resurgence in demand within emerging industries and the manufacturing sector. The steel industry is experiencing a notable shift in its reliance on the real estate sector, with a concurrent increase in demand observed in emerging areas of infrastructure, new energy, and various manufacturing sectors encompassing automobiles, shipbuilding, and home appliances. Furthermore, in relation to the steel industry, it is noteworthy to mention that the construction sector in the United States experienced a substantial increase of 23,000 employment opportunities during the month of October. The ongoing expansion of construction employment has the potential to augment the need for steel, as the demand for steel escalates in tandem with the upsurge in commercial and infrastructure undertakings, particularly in relation to rebar and h-beam steel.
The recent decline in oil prices, amounting to approximately 5%, has brought them to their lowest level in a span of four months. This downward trend has been attributed to concerns among investors regarding the global demand for oil, which has been further exacerbated by underwhelming economic data originating from both the United States and Asia.
The festival appeared to have subdued the activity, which is anticipated to be improved in the near future.
The majority of the week was consumed by the Diwali festivities, resulting in a notable decrease in overall activity. Furthermore, the market typically rallies during Diwali; however, this time it did not, and we anticipate some corrections after the holiday. Furthermore, there exists a notable challenge pertaining to the sale of recycled materials. This is expected to improve in the coming time.
In accordance with S&P Global Ratings, India’s economic development prospects are anticipated to remain robust in the medium term, with GDP expanding by 6-7.1% annually in fiscal years 2024-2026.
17 November to 19 November 2023
25 November to 30 November 2023
01 December to 02 December 2023
A degree of market sluggishness persists, and LC issues and economic and political unrest persist. The prevailing market conditions in the current setting exhibit a tendency towards a lack of firmness.
Previously, it has been extensively reported on the significant magnitude of the problem caused by LC issues, which has now escalated to such an extent that potential buyers are refraining from presenting any offers. Furthermore, local recyclers are displaying a lack of interest, thereby worsening the challenges faced on a regular basis.
Moreover, ongoing disruptions and unrest in this destination, stemming from the approaching elections, will probably worsen the situation to serious levels. Over the course of two weeks since November 1, Bangladesh’s official foreign exchange reserves have decreased by over 5.0 percent, reaching $19.6 billion. The country is
25 November to 28 November 2023
12 December to 15 December 2023
26 December to 29 December 2023
The market is unchanged, although ratification of the HKC may be approaching. The market situation has remained mostly unchanged from the previous week.
Industry insiders report that Pakistan is currently ratifying the Hong Kong Convention (HKC). It has been circulating for some time that the government is attempting to secure Pakistan’s accession to the HKC and that formal approval from the cabinet is forthcoming for this purpose.
As a result of the IMF-reasoned staff-level agreement, the PKR has ceased to depreciate against the dollar and has firmed marginally over the past two days.
Throughout the month
The local market has experienced a notable upturn, thereby instilling a sense of optimism regarding future prospects. The market has experienced a notable enhancement of 8 USD in both the local and imported sectors.
There has been a notable increase in the projected tonnages set for delivery in the early months of 2024.
A surplus of $1.9 billion was recorded in Turkey’s current account in September, and the country’s bonds are poised to recover next year, suggesting that economic orthodoxy may be bearing fruit. The magnitude of the amount surpasses the median prediction of $1.4 billion as reported by the outlet in its survey.
Beaching Dates Throughout the month