Ship Recycling : Indian market experienced significant decline

Ship Recycling : Indian market experienced significant decline, weekly ship recycling market report by world’s leading cash buyers of the ships for demolition.

Highlights of the Week 

In the ship recycling sector this week, there has been a significant decline observed in India. However, it is worth noting that buyers continue to show strong interest in purchasing. On the other hand, the market in Chittagong remains slow, with recyclers displaying reluctance to sell their inventory. Additionally, there are lingering concerns regarding LC issues in this particular market. The escalating nature of this persistent problem is increasingly raising significant apprehension over time. Pakistan is currently facing challenges related to exchange rate fluctuations, which have resulted in a decline in the local market. Lastly, Turkey experienced a decrease in both imports and domestic prices, while facing ongoing challenges related to tight supply conditions. It remains to be seen how this sector’s trajectory develops over time. 

Global steel prices are expected to rise moderately from present levels through December on expectations that the Chinese housing industry would improve, with Beijing likely to provide some stimulus. Despite the fact that the Chinese property industry is still in contraction, there are clues of a turnaround in Mainland China’s steel consumption growth. The issue surrounding China’s steel output growth rate in 2023 is whether and to what degree the Chinese government chooses to control steel production levels for the remainder of the year. Production is likely to improve in the fourth quarter, increasing supply and extending into the first quarter of 2024, owing to Chinese steel mills. Other significant markets are also expected to rebound in terms of output. 

One ongoing global conflict that has garnered significant attention is the ongoing and violent confrontation between Israel and Hamas. As the situation deteriorates, the Israeli authorities have issued an evacuation order for around 1.1 million individuals residing in northern Gaza. It is disheartening to witness the severity of the situation in Gaza, where the humanitarian crisis is intensifying, leading to concerns of potential starvation among the population. 

Unlocking the Potential of Bangladesh’s Maritime Industry: A Collaborative Effort with the Netherlands

Exchange Rates: 

USD / INR USD / BDT USD / PKR USD / TRY 

This Week : 83.26 Previous Week : 83.21 Lost : 0.05 

This Week : 110.66 Previous Week : 110.20 Lost : 0.46 

This Week : 277.45 Previous Week : 278.99 Gained : 8.58 

This Week : 27.80 Previous Week : 27.61 Lost : 0.19

INDIA

The local market has experienced a significant decline, yet there remains a notable level of buying interest.  The market has experienced a significant decline throughout the entire week. The current market conditions are characterized by negative sentiments. However, there is still a strong interest among buyers to make purchases. 

Crude steel production in India increased by 14.7% from April to September of the 2023- 24 fiscal year, reaching 69.65 million tonnes (MT). This represents a substantial growth when compared to the 61.06 MT generated throughout the same time frame in the 

India should aim for an 8% annual economic growth and increase investments in sectors like mining, utilities, transport, and storage. This will enable India to surpass China as the largest contributor to global GDP, according to a report. 

Beaching Dates 

14 October to 20 October 2023

26 October to 3 November 2023

12 November to 19 November 2023 

Gujarat Maritime Board honored with SAR award

BANGLADESH

The current state of the local market is tardy and there is a lack of demand, LC remains an issue. 

The current market conditions continue to exhibit a persistent state of stagnation, characterized by minimal activity. We may assert that the local market is slow, with little to no demand and almost no sales; the majority of recyclers are not selling their inventories. 

Buyer activity has begun to pick up in terms of purchases; however, the week is still relatively quiet, and opening the LCs remains a challenging undertaking. 

In order for the prices of imported products to be properly verified, the Bangladesh Bank has issued a circular instructing commercial institutions to include specifics of the imported goods when opening LCs. 

A portion of export earnings have become stranded overseas. Bangladesh Bank officials believe that approximately USD 1 billion has been held abroad during the preceding two years. This money, according to experts, has been laundered. The Bangladesh Bank has now issued an order for the return of those funds to Bangladesh. However, economists are skeptical of this initiative’s success. 

Beaching Dates 

27 October to 30 October 2023 

12 November to 15 November 2023 

25 November to 28 November 2023 

PAKISTAN

The market is unchanged, but buyers are on edge because of currency fluctuations. The present scenario is comparable to that of the previous week, characterized by limited activity. However, it is noteworthy that local markets have experienced significant declines due to fluctuations in the dollar exchange rate. 

The value of the dollar has fallen below the threshold of PKR 280 and continues to decline on a daily basis, leading to heightened anxiety among buyers. The price of steel plate and scrap has seen a significant decline in the last week, with scrap now being sold in a range of 400 to 405 dollars per ton. 

The central bank of Pakistan has complied with an IMF forward book target of $4.2 billion for the month of September and is well positioned to meet others, including net domestic assets and net international reserves, in accordance with the bank.

Beaching Dates 

Throughout the month 

TURKIYE

The market saw a drop in imports as well as the local market, and supplies remained depressed.  The import value witnessed a decline of 10 USD, while the local value had a fall of 5 USD.  Presently, the availability of vessels in this location is significantly limited. 

The Turkish Lira had a decrease in value in relation to the US dollar, with the dollar reaching its all-time highest exchange rate versus the lira at 27.87. Investors closely monitored a study released by the Organization for Economic Cooperation and 

Development (OECD) regarding the nations experiencing the most significant food price inflation globally. According to the survey, Turkey emerged as the country with the greatest inflation rate, reaching 72.9%. 

Beaching Dates Throughout the month