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Bangladesh: Ship breakers keep their yards shut for 9th day

Ship breakers kept their yards shut for the 9th day Tuesday to force the government to withdraw a circular on mandatory requirement of environmental certificate.

The ship breakers are required to procure the certificate from sellers that the old ships do not carry any toxic material.
Enam Chowdhury, a senior consultant of Bangladesh Ship Breakers Association said: “It is difficult to procure a certificate from the exporter as it involves several parties and several countries.”

However, the prices of steels in the local market remained stable despite the strike.

On Tuesday, the prices of 40-grade rods ranged between Tk 39,000 and Tk 40,000 a tonne and 60-grade mild steel (MS) at Tk 47,000-Tk 48,000 a tonne.

“A higher stock of scraps at the re-rolling mills is keeping the steel market stable,” said Aameir Alihussain, a director of the BSRM, the country’s largest rod manufacturing company.

Bashir Uddin, managing director of Mohna Steels said: “Actually there is poor demand for rod at the moment; otherwise, the long strike would have affected the market.”

Bashir also said the slow development works by the government made the demand side sluggish.

However, ship breakers said they will continue to suspend operation at their yards until the government withdraws its circular.
According to ship breakers, on an average 10,000 tonnes of old ship scrap is supplied to the re-rolling mills a day. Currently, around 100 old ships are beached at the yards.

Bangladesh has more than 250 re-rolling mills to produce around 2.5 million tonnes of steel a year.

Ship breaking industry supply around 2.0 million tonnes of scrap to the re-rolling mills.
Source: Financial Express



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