germany japan dubai · similarly in pakistan and bangladesh, there is a noticeable spike in ......
TRANSCRIPT
Germany
Dubai
Greece
Hong Kong
Japan
WEEKLY SHIP RECYCLING REPORT
22nd to 26th June, 2020
OUR OFFICES
MARKET INSIGHTS 01
02 MARKET PRICES
03 LIST OF VESSELS SOLD IN THIS WEEK
01
02
04
03
INDIA
BANGALDESH
PAKISTAN
TURKEY
GLOBAL SHIP RECYCLING MARKETS So far within the subcontinent, an incomplete recovery from the Covid19
pandemic is being witnessed and because of the panic, ship recycling yards,
mills and other allied industries are facing a lot of challenges in operating with
a limited work force.
In India, since testing is now being done on a larger scale, every day records a
new high. Similarly in Pakistan and Bangladesh, there is a noticeable spike in
the number of infected cases.
With prices of foreign originated imported scrap being at par with recyclable
ship prices post covid, traders bargain this as an opportunity to make fresh
invest through purchasing ship available for recycling at discounted prices.
So far no-one in the iron and steel business can clearly predict that in which
way the industry will head until a proven cure for the coronavirus is found.
As the situation in Turkey has improved drastically with a whopping 86% of
recovery from the infection, mills and traders have resumed their bookings and
are actively looking for HMS available in the western markets.
From the Fareast, Japan, as a nation; has very well fought against the virus with
a 90% recovered rate.
Trade-war between China and USA is intensifying affecting the global supply
chain.
Covid-Panic is increasing across the nation.
INDIA
Jan-Mar
Beaching Dates: 19th to 27th June followed by 1st to 10th July, 2020
275 270
290
Tanker Bulk
Carrier
Container
All figures are in USD values
Like the previous week, the prices of ship plates in Alang is stable and rather improving
after a long period of gap.
From it’s last week prices of ship plates have increased by 20% in it’s value. Now
recycling facilities in Alang are not only supplying to its nearby areas but also to mills
located in other states such as Rajasthan, Madhya Pradesh and upto Uttar Pradesh.
Interestingly, the demand for domestic scrap is increasing and improving but on the
other hand the demand in importation of recycling ships is low. Only if the prices of ship
plates continue to stay healthy until end of July, we can very well anticipate that the ship
recyclers may start booking new and fresh tonnages with an active interest.
Currently mills, recycling yards, construction sites as well as transport companies are
facing a lot of labour issues. Their working hands have returned back to their villages
due to covid-panic, harvesting season and marriages. Workers will return when
monsoon ends and only if the Government makes an official announcement subject to
changes in safety and cure from the Covid19 pandemic.
Except special passenger trains, all other trains stand as cancelled till 12th of August due
to constant increase in number of cases.
Covid19 Cases
Confirmed – 490,000
Recovered – 286,000 (58%)
Deaths – 15,301
Currency Exchange
1 USD = INR 75.57
(As of 26th June, 2020)
BANGLADESH
Jan-Mar
Beaching Dates: 21st to 24th June followed by 4th to 7th July, 2020
Market sentiments are weak.
290 280
305
Tanker Bulk
Carrier
Container
All figures are in USD values
Covid19 Cases
Confirmed – 127,000
Recovered – 51,495 (41%)
Deaths – 1,621
Tax concessions will be given to ship recyclers in the financial year 2020-2021, this benefit
may motivate them to book new tonnages.
Dismantling of ships in Bangladesh is much faster compared to India and Pakistan. Hence
due to a lesser turn around in operations, recyclers are more willing to book tonnages at
lesser prices with an optimistic approach that when the market will correct, they will be to
average out their investments and make healthy profits.
Cases in Bangladesh are increasing rapidly, due to this their economic growth is suffering.
L/Cs issued using Bangladeshi banks lack trust and credibility in international finance
markets hence discounting of these L/Cs becomes a challenge which no ship owner / cash
buyer wants to deal with.
Mills that were involved in importation of HMS scrap in bulk and containers are now silent
with excess inventory booked for its use. Currently there is surplus inventory lying in
recycling yards as well. But the sad part is that with so much inventory available, finished
steel production is at it’s low. Demand for finished goods is very minimum. Many small
scale industries that feed on the iron and steel sector are shutting down or bleeding
losses.
The present situation in Bangladesh doesn’t look good at all and will take it’s own time to
correct. All corrections will be directly proportional to an increase in demand for finished
goods irrespective of HMS supply.
Currency Exchange
1 USD = BDT 84.77
(As of 26th June, 2020)
PAKISTAN
The financial budget for the year 2020-2021 has been announced, we re-iterate that the
new tax reforms will benefit the ship recyclers of this region.
About 2% reduction will be granted in Additional custom and the advance income tax is
reduced from 4.5% to 2% which is again an additional discount of 2.5%.
Ship recyclers in Pakistan are offering highest price bands within the subcontinent, this is
not only because there is a high demand for HMS but also because in the yard owner’s
lens purchasing recyclable ships is more lucrative on account of low prices post Covid.
From the beginning, yards in Pakistan are more interested in purchasing suitable and large
sized vessels, either tankers, VLOCs or cape-sized bulk carriers as their mills require more
re-rolling iron and steel that can be easily derived from such type of vessels.
We believe that recyclers in this region will continue to remain aggressive. Though we
learnt that there are labour concerns in this part of the subcontinent too, but we do not
feel that the bookings of new tonnages is going to stop.
Inward movement of ships is very fast in Pakistan, ship owners don’t have to wait for a
beaching tide, further it is easy to repatriate their crew as international flights of
commercial airline companies are flying from Pakistan to U.A.E. on a daily basis.
Hence they are happy in delivering their vessels to Port Gadani.
Beaching Dates: 1st to 30th June, 2020
Recyclers are offering healthy prices to acquire tonnages.
300 295
310
Tanker Bulk
Carrier
Container
All figures are in USD values
Covid19 Cases
Confirmed – 196,000
Recovered – 84,168 (37%)
Deaths – 3,962
Currency Exchange
1 USD = PKR 167.24
(As of 26th June, 2020)
TURKEY
Good news is that their exchange rate is stable at TRY 6.86 for 1 USD.
Restrictions related to Covid19 have been lifted, as the country has set a strong example
in defeating the virus.
Recycling vessels are arriving at port Aliaga for EU-Approved yards whereas there is a
demand among non EU-approved yard owners. All EU- Approved yards are full.
Prices of HMS have softened slightly and is now being traded at USD 252-254 CFR
Turkey, that is less by USD 8-10.
Honestly, we anticipate that the prices of HMS may further decline as the demand for
Turkish rebar is falling amid low demand.
Jan-Mar
Beaching Dates: 1st to 30th June, 2020
No more restrictions related to Covid.
175 170 180
Tanker Bulk
Carrier
Container
All figures are in USD values
Covid19 Cases
Confirmed – 193,000
Recovered – 166,000 (86%)
Deaths – 5,046
Currency Exchange
1 USD = TRY 6.86
(As of 26th June, 2020)
275 270 290 290 280
305 290 295
310
175 170 180
0
50
100
150
200
250
300
350
Tanker Bulk Carrier Container
India Bangladesh Pakistan Turkey
250 270 263 278 257 275 255 257
0
50
100
150
200
250
300
350
HMS 80:20 Shredded
India Bangladesh Pakistan Turkey
All figures are in USD values
PRICING INDEX
410 368
336
311 315 286
0
100
200
300
400
500
Fujairah Singapore Rotterdam
MGO
VLSFO
(8) (17) (13) (13) (15) (17) (10) (10) (5)
(5) (5)
(5) (5) (5)
(10) (10)
(10) (5)
LIST OF VESSELS SOLD IN THIS WEEK
Vessel Name Type Year of build Country of
Built LDT Term of sale Location of delivery
Sale Price
(In USD)
Livramento Products
Tanker 1996 Brazil 9,420 MT AS IS Brazil USD 195
Pegasus
Highway
Vehicles
Carrier 1994 Japan 12,738 MT DELIVERED
Alang, India for
Green ship recycling
at Kline approved
yards only
UNDISCLOSED
Arcadia
Highway
Vehicles
Carrier 1995 Japan 12,784 MT DELIVERED
Alang, India for
Green ship recycling
at Kline approved
yards only
UNDISCLOSED
Wan Hai 207 Container Ship 1990 Japan 6,884 MT AS IS
Hong Kong for HKC
compliant Green ship
recycling yards only
UNDISCLOSED
Wan Hai 212 Container Ship 1993 Japan 6,923 MT AS IS
Hong Kong for HKC
compliant Green ship
recycling yards only
UNDISCLOSED
Information shared on sale of vessels is best to our knowledge.
LIST OF VESSELS SOLD IN THIS WEEK
Vessel Name Type Year of build Country of Built LDT Term of sale Location of
delivery
Sale Price
(In USD)
Kota Juta Container ship 2001 Japan 7,621 MT DELIVERED Chattogram,
Bangladesh USD 311
Armada
Purnama Container ship 1995 Poland 5,253 MT DELIVERED
Chattogram,
Bangladesh USD 300
Hijau Terang Container ship 1996 Germany 3,926 MT DELIVERED Chattogram,
Bangladesh USD 300
Euro Spirit Vehicle Carrier 1998 Japan 12,739 MT
DELIVERED
with 1,100
tons of bunker
Alang, India for
Green Recycling
purpose
USD 285
Information shared on sale of vessels is best to our knowledge.
Germany
Greece Japan
Contact us: [email protected] www.best-oasis.com
Mr. Gerd Leopold
President Purchase (Germany)
Phone: +49 4171 - 88 02 04
Mobile: +49 172 3701021
Fax: +49 3212 – 1214334
Skype: shiprecycling
Mr. Yiannis Kourkoulis
Vice President Purchase (Greece)
Phone : +30 2104617 999 ext: 241
Mobile : +30 694 2583977
Skype: giannisk3
Mr. T. Ishii
Representative in Japan
Mobile : +81 90 1536 1497
Phone: +81 3 5452 2405
Email: [email protected]
THANK YOU
Dubai
Mr. Naren Sampath
Purchase (Dubai)
Mobile : +971 558369147
Mobile : +971 529205094
Skype:
Disclaimer
While every care has been taken to ensure that
the information in this publication is accurate,
Best Oasis Limited can accept no responsibility
for any error or omissions or any consequences
arising therefrom. Figures are based on latest
available information, which is subject to
subsequent revisions and corrections. The
views expressed are those of Best Oasis Limited
and do not necessarily reflect the views of any
other associated company. Re-producing any
material from this report without permission
from Best Oasis Limited is strictly prohibited.
OUR OFFICES