Second-quarter of 2020 quite impressive considering the situation of Covid-19 pandemic. During quarter completing September-2020, there were 170 ships were sent for demolition, and out of these 110 ships were kissed the seashore of South Asian countries. Steel prices in comparison to previous quarter changed in favour of ship recyclers, the reason they motivated to keep buying end of life ships. Eyebrows raised when some accident occurred in Bangladesh ship recycling industries.
Despite the European Union not sending their end of life vessels to South Asian countries, Bangladesh, Pakistan and India performing well at ship recycling business. Turkey is a major country who bagged EU flagged passenger ships for demolition. Earlier in this year, Bangladesh forbade the ship J. NAT (presently named RADIANT) on account of heavy quantities of toxic waste. Then such ship also tried to enter Indian water during mid-October-2020, but local media strongly raised the issue, and owner of the ship now may send Fujairah port for offloading toxic waste and once it cleaned, they may again approach to Indian end buyers.
Just about 33% of the ship offered to South Asia this quarter changed the banner to the libraries of the Comoros, Gabon, Palau and St. Kitts and Nevis only weeks prior to hitting the seashore. These banners aren‘t regularly utilized during the operational lifetime of boats and offer ‘last journey enlistment‘ limits. they‘re especially popular the brokers scrap-sellers that buy vessels money from transport proprietors, and are dark and boycotted because of their helpless usage of the global chief of naval operations‘ office law.
Alang shipbreaking industries showed keen interest in buying ships during May and June, while August, September and October fewer vessel can attract them. The source said that again after a festival season in India, the ship, recyclers will try to find out appropriate ships for their demolition business. Oxygen shortage at Alang badly affected ship recyclers, production cost during September gone 4 times higher. But Covid-19 hospital demands during October decreased hence supply to ship recycling industries gone upward. Migrant labourers also now coming back slowly but surely, hence after festival season, Alang will provide a good quantity of scrap.
Bangladesh and Pakistan based ship recyclers also anticipating a good forthcoming quarter, as the demand of steel in both countries is on the higher side, and main source of steel raw material is the ship recycling industry.