GMS weekly report on Turkish ship breaking industry for WEEK 9th 2015

After several weeks of uncontrollable fluctuations, it appears that the Turkish market is finally starting to show signs of stability. It was therefore another week with no major changes in factors (ie steel prices and the local currency) affecting the prices for ships.

With levels stabilizing in the low USD 200s per LT, not only are end buyers but also ship owners seeming to show interest to negotiate as the reality of the prevailing levels gradually started to seep in.

Notwithstanding, the immediate future of the Turkish market would be of keen interest for those considering to sell their units into, considering China is returning back from their holidays post New Year.

Source: steel guru. 3 March 2015

http://www.steelguru.com/international_news/GMS_weekly_report_on_Turkish_ship_breaking_industry_for_WEEK_9th_2015/358476.html

GMS weekly report on Pakistan ship breaking industry for WEEK 9th 2015

A far more positive week ensued in Pakistan this week as several larger LDT capesize bulkers were sold from existing cash buyer inventories, in addition to freshly proposed market candidates.

End users appeared far more willing to commit to new units at these levels having received some encouragement from the lack of negative news in the Indian budget (as had been expected this week).

It was therefore no surprise to see the Noble controlled AQUA CHALLENGER (22,695 LDT) fetch a firm USD 400 per LT LDT with approximately 2,000 Tons of bunkers remaining on board at the time of delivery (about 17 to 18 USD per LDT of value). The vessel had been sold via a court auction in the US with ex owners reportedly failing to pay their bills to the charterers.

Another sale of note saw the Chartworld controlled STAR YANDI (20,535 LDT, 96 built in Korea) sold for a decent USD 397 per LT LDT with 1,000 T bunkers remaining onboard.

Source: steel guru. 3 March 2015

http://www.steelguru.com/international_news/GMS_weekly_report_on_Pakistan_ship_breaking_industry_for_WEEK_9th_2015/358471.html

Authorisation: UK recyclers show weak interest on EU ship recycling regulation

London, UK — On 10th of December 2014, Defra opened a consultation on proposed measures to implement elements of EU regulation 1257/2013 on ship recycling relating to the authorisation of UK ship recycling facilities. The department wanted to know what stakeholders think about proposals to change how UK ship recycling facilities are regulated to work on EU flagged ships.

The new requirements are detailed in the EU ship recycling regulation (1257/2013). The EU Regulation imposes an obligation on ship recycling facilities wishing to undertake recycling activities on ships that exceed 500 gross tonnes and flying the flag of an EU Member State to be authorised by the competent authorities of Member States.

Proposed changes include:

·   identifying the competent authorities in the UK

·   how these authorities will permit and authorise work

·   what changes ship recycling facilities in the UK will need to make to comply with the regulations

·  how ship recycling facilities can apply to be included on the European List of authorised facilities.

The consultation document was issued by e-mail to thirty three relevant stakeholders and was placed on the Gov.UK website.It was closed to 20 January 2015. Defra received one response to the public consultation. This came from a UK ship recycling facility, Harland and Wolff Heavy Industries Ltd, and mostly agreed with the proposed approach.

Prior to formal consultation, Defra wrote to all of the UK ship recycling facilities that are either currently operational and hold the appropriate permits and approvals, or that have previously been involved in ship recycling activities, to make them aware of the new EU Ship Recycling Regulation and to discuss compliance with its requirements. Five facilities responded but only three, including the respondent to the consultation, indicated a wish to become authorised. No other facilities have come forward in response to the public consultation.

The summary of responses and government response can be downloaded from gov.uk.

Source: Department for Environment, Food & Rural Affairs. 4 March 2015

http://recyclingportal.eu/Archive/11795

GMS weekly report on China ship breaking industry for WEEK 9th 2015

With the Chinese New Year officially ending this week, the slow migration from hometowns back to places of work began, with most expected to be fully back to business by Monday.

The immediate direction of the ship-recycling markets in the Indian sub-continent rests firmly on the shoulders of China and its steel exports. It is very much hoped that exports will slow, bearing in mind China has no production targets to meet this coming fiscal year and a significant slice of the 2014 surplus has already been exported prior to the New Year.

With local steel prices having slid to unprecedented levels over the course of the past year, it is also hoped that the Chinese market can get back on its feet and become more than just a domestic market for state owners eligible for the government subsidies on the scrapping of their older vessels.

Source: steel guru. 3 March 2015

http://www.steelguru.com/international_news/GMS_weekly_report_on_China_ship_breaking_industry_for_WEEK_9th_2015/358480.html

GMS weekly report on India ship breaking industry for WEEK 09th 2015

The much anticipated budget of February 28th (the first full budget since Mr Modi has taken charge) seems to have brought with it, very little of material concern to the ship recycling sector.

More time will be needed to mull over the details, as end users can only be sure of their fate on Monday once the finer print has been studied. However, a cursory review appears to show no significant increases on taxes to the ship-recycling sector, but conversely, no new duties on any freshly imported Chinese billets seem to have been imposed so far.

As such, this is largely positive news for the industry, with steel prices having increased by as much as USD 10 to USD 15 per LDT recently and the currency trading in and around a healthy INR 61 against the US Dollar over the course of the last few weeks.

The worst of the damage appears to be over (for the time being) and end buyers seem encouraged enough to return to the bargaining table in search of fresh tonnage, with which to stock their plots and try to cancel out the disastrous high-priced purchases of 2014.

Several market sales were therefore recorded with the general cargo vessel TOBOL (4,108 LDT) from Far East Russian owners SASCO committed for a modest USD 345 per LT LDT (the vessel was built in Poland and had a steel propeller both significant negatives). In contrast, the handymax bulker UMANG (8,830 LDT) was sold for a very decent USD 391 per LT LDT with the 500 T bunkers adding about 17 USD per LDT of value.

Source: steel guru. 3 March 2015

http://www.steelguru.com/indian_news/GMS_weekly_report_on_India_ship_breaking_industry_for_WEEK_09th_2015/358446.html