GMS Market Commentary on Shipbuilding in Week 47

Release time：Nov 27, 2019 From：admin

The big news this week centered around the decisive steps taken by the Indian government, to approve the implementation of the Recycling of Ships Bill, 2019 and accession to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009. Prime Minister Narendra Modi has presently approved the proposal and now both houses of Parliament must review and pass the Bill, before it is finally signed into law. The Bill includes restrictions against the installation & use of hazardous materials and IHMs & Ship Recycling Plans will now be a mandatory requirement for any new vessels arriving at Alang. Yards will also need to obtain authorization and have permits issued in order to import & recycle vessels and only those up to HKC standards will be able to operate on this basis, once the Bill is signed off by parliament.

In terms of the market, the positivity witnessed over the previous week or so has sustained as local steel plate prices have reported improvements across the board and all locations finally seem keen to acquire new vessels, at improving levels. Bangladesh has been the most active this week and several highly speculative sales have been reported to Cash Buyers, many of who appear to be getting somewhat carried away with this latest market surge. India is not too far behind Bangladesh, but Alang buyers will have to make do with the raft of HKC green vessels heading their way, as Chattogram is once again displaying a useful knack of aggressively and strategically improving their prices on favored units, in order to blow their competitors out of the water. Finally, Turkey, though firmer, seems to be entering another stage of stasis, with plate prices unchanged since the last couple of weeks and the Turkish Lira recording a marginal improvement as the week ended – all without any vessels being committed to local Recyclers.

For week 47 of 2019, GMS demo rankings / pricing for the week are as below.

Source : STRATEGIC RESEARCH INSTITUTE, STEELGURU, WITH INPUTS FROM GMS