Residential prices have increased by 5.40% in Q3
Rotterdam-based Samskip has commissioned Cochin Shipyard to build two hydrogen fuelled feeder vessel by using scrap from ship recycling facilities in Alang.
“We would expect prices offered by ship recycler to improve and stay strong,” said a report by Wirana Shipping, following the shipbuild order.
It would be interesting to note that the vessel Tycoon (Bulker built 2000 with LDT 12627) which seemed to be bought at a speculative price earlier has been sold to ship recycling yard almost on a cost-to-cost basis which shows that there is a definite stronger sentiment amongst ship recyclers.
Separately, the Indian finished steel market has also improved based on economic indicators seen in the construction, automobile, service and manufacturing sectors.
“These developments in the market have strengthened sentiments of ship recyclers,” said the weekly report (week ended 7 Oct).
The local plate market stabilized this week as the prices remained unchanged over the previous week’s close.
Though imported scrap prices dropped by US$12/MT this week, local scrap prices improved by US$6/MT, it said.
Considering Indian currency has been under pressure against the USD with an expectation that it could depreciate further, local scrap will be preferred by traders, the reported added.
Local billet prices have been reduced by US$10/MT in lines with a weakening Asian and the Gulf markets.
The local market for finished steel continues to remain strong, which is a big positive.
Indian passenger car sales also hit an all-time monthly high of 363,000 units in September marking a 2.40% growth over same month in previous year.
As per a report which covered 13 important cities, residential prices have increased by 5.40% in Q3 2023 which will further encourage the construction industry.
These are also signs of increasing consumer confidence and spending, all leading to economic growth.
Prices offered by ship recyclers improved this week by about US$10/LT LDT. Fiinews.com
