World’s leading ship cash buyer for recycling, Best Oasis reported in their weekly ship recycling report that, India market is seeing an upward trend and accompanied by a notable increase in demand.
Russia agreed with OPEC+ partners to reduce exports this week, which aligned with a decline in US crude inventories, while US economic data bolstered
expectations of a halt in the Federal Reserve’s rate increases. Additionally, the petroleum market is reacting to the extent of OPEC production limits. Last week,
petroleum inventories in the United States decreased by 10.6 million barrels to 422.9 million barrels, indicating that demand for crude is still outweighing supply,
resulting in a price trend upward.
Alang ship recycling weekly position as on 4th September 2023
It is anticipated that Chinese steel prices will see a decline through 2024 due to a weakening in demand growth and the presence of surplus capacity, which
exerts pressure on the market according to analysts. The prolonged crisis in China’s real estate market is the primary factor influencing price fluctuations. The
real estate sector in China constitutes around 37% of the country’s steel production, although the larger building and construction industry accounts for
approximately 60% of steel consumption. According to the forecasts, there is an anticipated decline of 22% in steel demand from the property sector for the
current year, resulting in a projected volume of 275 million tons. While it is true that some infrastructure developments may partially mitigate this effect, the
overall demand for steel is projected to decline by 5%, resulting in a total of 910 million tons.
Warning signs are rising throughout the globe because China’s economy was expected to fuel a third of global economic growth this year but has instead slowed
dramatically in recent months. With China’s imports of everything from building supplies to electronics falling, policymakers everywhere are prepared for an
economic impact. Trading partners in Asia and Africa are feeling the effects most severely. Not all is bleak, however. The slowdown in China will have a negative
impact on oil prices throughout the globe, and deflation in the nation will lead to lower shipping costs. That’s a relief for nations like the United States and the
United Kingdom, which are currently struggling with high inflation.
RCL reacts to profit decline by recycling older ships
India
Market is seeing an upward trend, accompanied by a notable increase in demand.
The market is experiencing a consistent upward trend on a daily basis.
- There exists a substantial demand for ships in this vicinity, with a predominant
- preference for container vessels. However, it is noteworthy that the demand for bulk
carriers in India remains relatively modest. - Due to sluggish international demand and increased competition from Chinese steel
producers, India’s steel exports have decreased by 33 percent. Despite this setback, the
robust domestic market has cushioned the blow for local steel manufacturers. According
to reports, Chinese manufacturers are undermining global competitors with reduced
prices. As a result, Indian steel exporters have seen a decline in sales to the Middle East
and Vietnam as these regions prefer Chinese steel.
Beaching Dates
1 September to 06 September 2023
14 September to 20 September 2023
26 September to 30 September 2023
Bangladesh
The market is experiencing a downward trend, but, there is potential for a resurgence in the months to come.
- The current state of the markets exhibits a persistent decline, with both the plates and
melting scrap sectors experiencing a notable lack of movement. The prevailing
conditions indicate a subdued and stagnant market environment. - However, it is our contention that there is a strong likelihood of their reemergence in the
market within a span of approximately one month. - After Bangladesh’s ratification of the Hong Kong Convention, the government, ship
recycling yard employers, and local unions convened on August 30 for a round table
meeting to plan the next steps. The meeting was held with the belief that Bangladesh
must enhance its social infrastructure at the same time as its physical infrastructure. It
will require a socially just transition to sustainable ship recycling. In practice, this
requires yard owners to recognize unions, negotiate collective agreements, establish
joint health and safety committees, and engage in dialogue with the government and
unions.
Beaching Dates
01 September to 02 September 2023
14 September to 17 September 2023
28 September to 30 September 2023
Pakistan
The market has experienced a decline; and a sense of hesitancy among potential buyers.
- The local markets have seen a decline, resulting in buyers exhibiting reluctance to
make purchases at prices over 500. One of the sales is occurring at a high price due to
the availability of LC, while the other sales lack genuine purchasing interest as they
are unable to open LC, resulting in a lack of buying interest. - The issue of currency is currently posing a significant challenge, with its value reaching
a historic low of 306 PKR per USD. This unfortunate circumstance has resulted in a
sharp increase in inflation rates. - Furthermore, the electricity rate has experienced a significant increase, prompting
both businesses and households to fiercely refuse payment and engage in striking
activities. - Steel prices increase slightly. No new LCs were opened, and it appears that banks are
once again unwilling to open.
Beaching Dates
Throughout the month
Turkiye
The local market exhibits a state of stability, characterized by a lack of noticeable movements.
- The current market conditions in this region are exhibiting a state of stability.
- The ship recycling market has shown a state of inactivity since there has been a notable
absence of movement observed in recent weeks. - The Turkish economy exhibited a year-on-year growth rate of 3.8% during the second
quarter of 2023, surpassing the expectations of the market. During the three-month
period under consideration, there was a significant increase of 20.3% in the imports of
goods and services, in contrast to a notable decline of 9% in the exports of goods and
services as compared to the same period of the previous year.
Beaching Dates
Throughout the month
Ship recycling market facing challenges
