Ship Recycling: Budget News for Bangladesh
An eventful week in the ship recycling industry saw the announcement of the Bangladeshi budget surprisingly deliver negative news for Chattogram’s ship recycling sector, reports cash buyer GMS.
“Bangladesh’s proposed budget has surprisingly fallen short of appreciating, assessing, or even addressing the extent of the nation’s ongoing economic crises via establishing realistic targets and measures needed to correct recently erupted financial abnormalities,” says GMS.
The Taka declined further against the U.S. Dollar this week, but domestic steel plate prices also reported (unexpected) movements in the wrong direction.
The Pakistani market that continues to slip as domestic fundamentals seem to have little to no consequence on the mindset / performance of Gadani ship recyclers.
Turkey’s languish on the side lanes continues, making matters worse for Aliaga’s ship recycling fraternity, despite Turkish vessel offerings staying perched atop historical highs of their own.
“At the macro level, as conflict surges on in the Middle East and incursions into Rafah continue unabated, further news of escalating counterattacks on passing merchant ships and even naval vessels by Houthi rebels in the Red Sea Shipping lanes were once again reported this week, which will likely result in increasing logistical costs that only stand to apply further pressure on already high global inflationary numbers that have decimated certain economies worldwide.
Moreover, it certainly seems as though global ship recycling markets simply aren’t getting the break they have been suffering for, says GMS.
For week 23 of 2024, GMS demo rankings / pricings are: