2 days Ago By hellenicshippingnews...
Source: Best Oasis Best Oasis added that “as year-end approaches, buying activity could see an uptick in November and December, potentially influencing price dynamics. A period of potential change may be on the horizon. With Donald Trump’s return to the White House, the stage is set for possible economic shifts.
His agenda includes tax cuts aimed at boosting domestic production, high tariffs to discourage outsourcing, and a shift from green energy back to fossil fuels. These policies could bring renewed momentum to the economy, but they also carry the risk of rising prices and inflation, which may lead the Federal Reserve to keep interest rates high. Trump’s push for stricter immigration measures, including an expanded border wall and increased deportations, could also affect labor dynamics.
The impact of these bold actions remains uncertain, leaving America on the edge of a new economic chapter full of possibilities —and the ripple effects may well be felt around the globe, potentially reshaping international trade dynamics, energy markets, and geopolitical alliances”. In a separate note, shipbroker Intermodal added that “in anticipation of the Hong Kong Convention taking effect in forthcoming June and to accelerate its implementation, BIMCO has launched the Ship Recycling Alliance, with founding members that include prominent cash buyers and recycling associations. Meanwhile, numerous industry participants were engaged last week in the Tradewinds Ship Recycling Forum in Copenhagen and Bahri Week in Dubai.
The Bangladesh market experienced subdued activity, largely due to a challenging economic environment. The IMF has revised Bangladesh’s GDP growth forecast downwards to 4.5%, from the previously anticipated 6.
6%, due to political instability, high inflation, and an overall economic slowdown. The lack of infrastructure projects is dampening domestic steel demand, which in turn is affecting the ship recycling sector, as a significant portion of local steel supply is sourced from the recycling industry. Scrap steel prices remained unchanged, with demand supported by few buyers.
In an effort to streamline industrial imports and reduce reliance on LCs, Bangladesh Bank has implemented new measures, including the introduction of a letter of agreement process. This initiative allows importers to access short-term foreign loans to settle import liabilities. In India, the weak steel demand hinders the efforts for the market’s improvement.
The exchange rate between US Dollar and Indian rupee recorded a historic low of 84.49, with further depreciation expected”. Source: Intermodal “Nevertheless, outlook for the Indian economy is positive, with growth projections around 7% in full 2024, driven by improvement in consumer spending and infrastructure investments.
Inflationary pressures persist, primarily due to higher prices in the food sector. Further inflation-related risks may emerge from geopolitical tensions or extreme weather events. In terms of activity, Alang shipbreakers have agreed to recycle a few container vessels in compliance with HKC environmental standards.
Steel plate prices have fallen by $6 per ton, and no change in ship demolition prices has been observed. In Pakistan, little has changed since last week. The economy faces challenges, struggling to secure a $7 billion bailout package from IMF, as investigations revealed mismanagement of IMF funds by the current government.
This uncertain environment is weighing heavily on the ship recycling sector, as difficulties in opening LCs and limited availability of funds continue to hamper business. Gadani is less competitive than its Alang neighbours, specially in terms of HKC compliance. Despite agreement reached with China for financial support, weak economic fundamentals are impeding any significant recovery in the sector”, Intermodal concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide.
