- The Ship Recycling industry is expected to resume its operations soon.
- With many countries easy restrictions and lockdowns, services might resume soon.
- Price levels are locally starting to creep back up after an initial fall due to the Covid-19.
- Domestic steel prices have improved aiding renewed appetite from the recycling yards.
- The capacity for EU flagged/owned tonnage is filling up rapidly.
- Prices have displayed a generally negative spiral in the subcontinent markets this week.
- Vessels in distressed situations have finally been granted special beaching approvals.
According to an article published in ShipBrief, the Ship Recycling industry is expected to resume its operations soon.
Easing of lockdowns
With many countries easy restrictions and lockdowns, lockdown in Turkey continues to hamper activities with only those vessels under tow being allowed to enter the recycling yards.
It is reported that price levels are locally starting to creep back up after an initial fall due to the Covid-19 pandemic. It is reported that domestic steel prices have improved aiding renewed appetite from the recycling yards.
Tonnage filling rapidly
Although as a previously raised concern, the capacity for EU flagged/owned tonnage in Turkey is starting to fill up rapidly with two out of the four yards that are EU approved stating they are basically full until the end of the year.
Despite much talk from certain authorities stating there is sufficient capacity for EU flagged vessels, this is quite apparent that some misinformation is being provided to certain sources – it is leaving Owners trading in EU waters or under EU flag with very little options indeed should they need to recycle their units.
This is set to be an area to keep a close eye on in the coming months ahead as the economic impact from this Covid19 outbreak starts to be felt more severely and put Owners under more financial pressure, Clarkson Platou Hellas concluded.
Source: GMS
Negative spiral noticed
Meanwhile, in a separate note this week, GMS, the world’s leading cash buyer noted that, “despite imminent talks of markets reopening soon, prices have displayed a generally negative spiral in the subcontinent markets this week, with end Buyers lowballing on any available units, including those vessels that are currently stuck at anchorages of the various recycling destinations and thus playing into the Recycler’s hands.”
The market expected to reopen soon
Yet, as the week ended, there was still no official news on the markets reopening in any location, with only those vessels with domestic crews onboard being allowed to the beach or those exceptional cases where special permissions were granted by the relevant authorities.
According to GMS, In Bangladesh, several vessels that have been waiting for nearly two months and one in India, are now considered to be in a distressed situation (due to the amount of waiting time) and have finally been granted special beaching approvals after appeals to the embassies of the relevant crew members and exceptional permissions from the customs/shipping authorities.
Draft SOPs have been issued for review to permit the beaching of vessels with foreign crew on board and it is hoped that these may come into force once officially signed off / ratified within the next week or so.
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Source: ShipBrief
