Marine Link
Thursday, June 20, 2024

GMS: Pakistan and Bangladesh Lagging Behind Alang

Maritime Activity Reports, Inc.

October 15, 2023

Source: GMS

Source: GMS

As deals continue to be concluded into Alang, the Indian ship recycling sector remains on a positive footing overall, with Pakistan and (especially) Bangladesh still lagging behind, reports cash buyer GMS.

Despite steel plate prices coming off by about US$ 11/Ton and the Indian Rupee weakening marginally over the course of the week, the overall outlook for India remains positive.

Several ship recyclers from the sub-continent markets were gathered at the annual Tradewinds Ship Recycling Conference in Singapore this week, as they discussed market sentiments, fundamentals, and the latest regulations moving forward. There was a healthy debate about the potentially blurry and contradictory nature of EU versus Hong Kong Convention recycling and the various rules and requirements imposed on each vessel, says GMS.

Attendance at the conference was good after this year’s ratification of the Hong Kong Convention by Bangladesh. It will enter into force two years later, whereafter, all yards in Chittagong must be Hong Kong Convention approved by a certain date in the future, in order to operate.

“There remains no change in the overall inertia of all markets as steel plate prices continue to flatline in both Bangladesh and Pakistan and their respective currencies continue down the same trajectory as last week,” reports GMS. “Even Turkey spent much of the week as last, with steel plates that were slightly weaker and still without any fixtures to support local demand.”

GMS expects the usual flow of feeder container ships and dry bulk vessels as the end of the year approaches, at what is perceived to be historically firm recycling levels in the low to mid 500s/LDT.

“Overall, even though the volumes of recycling tonnage remain muted, many in the industry are expecting supply to pick up going into 2024, and all of the recycling markets are firing (hopefully) on all cylinders once again, with the ability to open L/Cs with greater security and efficiency than we have seen thus far this year (especially in Pakistan and Bangladesh).”

For week 41 of 2023, GMS demo rankings / pricing for the week are: