Market Report: In the Ship Scrapping Business, it is "Covid Chaos"
The increasingly growing concern this week has been the number of mounting Covid-19 cases across the sub-continent, especially in India, where the country hit a daily record infection rate of over 200,000 cases per day, placing an increasing pressure on an already strained healthcare system that is fighting to keep up with the number of sick.
There is talk in India of another nationwide lockdown, as only the worst hits states/provinces are under quarantine at present, with residents urged not to leave their homes and further limited working hours are being mandated across many sectors.
Oxygen supplies across the country are being diverted away from recycling yards to hospitals in India and only a handful of yards remain operational as steel prices have artificially shot up this week, due to a lack of production.
Bangladesh too has seen its domestic cases rise again as the country endures another potential period of lockdown, which is set to last for another week as the Bangladeshi government strives to bring the exponential spread under control.
The holy month of Ramadan is now underway in Bangladesh and Turkey. Yet, despite this and Covid-19 lockdowns / restrictions resulting in reduced port / agent activity and banking hours, demand and pricing remain firm for those market units (mostly tankers and offshore) that are available.
Amidst this worrying backdrop, it has been another busy week in the recycling markets with several deals being done at impressive levels, as owners take advantage of the surging steel prices and decent demand for prompt pre-monsoon units.
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For week 16 of 2021, GMS demo rankings / pricing for the week are as below.
Demo Location Sentiment Dry Bulk Tankers Containers
Rank $/LDT $/LDT $/LDT
1 Bangladesh Steady 470/ LDT 480/LDT 490/LDT
2 Pakistan Steady 460/LDT 470/LDT 480/LDT
3 India Steady 450/LDT 460/LDT 470/LDT
4 Turkey Steady 250/LDT 255/LDT 260/LDT
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