Iron price hike hits local ship-breaking industry
Tuesday, 25 December 2007
Fakhrul Alam
CHITTAGONG, Dec 24: The country's construction industry is severely affected due to an acute crisis of scrap-iron stemming from the abnormal rise in prices of the same in international markets, sources said
With the rising demand for iron in different countries of the world, the prices of scrap vessels have also increased.
In the circumstances, thousands of workers and employees of the country's ship-breaking industry as well as re-rolling mills have become unemployed.
In the wake of such a worldwide downfall of the scrap-iron industry, the crisis of scrap vessels has also been acute in India, Pakistan, China, Vietnam, Philippines and other Asian countries.
Out of around 80 ship-breaking yards of Bangladesh, only 20 to 25 are now operating. Of them, only a few of the yards are getting scrap vessels while the rest are lacking such vessels.
According to the concerned sources, there are around 45,000 sea-going vessels in the world, which include container vessels, cargo vessels and oil tankers.
On an average, the life-time of a sea-vessel is 29 years and after the 29 years of sailing in the sea, the vessel is declared scrap.
The ship-breaking industry began flourishing in Bangladesh in the 80s.
It was established in the country's coastal area under Sitakundu Upazila.
Millions of workers were engaged in various activities in about 80 ship-breaking yards there.
However, these ship-breaking yards were rather deemed the iron mine of Bangladesh and around 1.6 million tonnes of iron were procured from there annually.
Later on, due to a crisis of scrap vessels, irregularities, shifting of capital elsewhere, etc. the Sitakundu-based ship-breaking industry was gradually losing its momentum.
As a result, thousands of workers of the closed yards became unemployed.
While talking to the FE, Bangladesh Ship Breakers' Association (BSBA) Adviser Jafar Alam said prices of scrap vessels increased many times in the international markets and none was willing to import similar vessels at this stage.
He also expressed his inability to inform as to when the situation would improve.
CHITTAGONG, Dec 24: The country's construction industry is severely affected due to an acute crisis of scrap-iron stemming from the abnormal rise in prices of the same in international markets, sources said
With the rising demand for iron in different countries of the world, the prices of scrap vessels have also increased.
In the circumstances, thousands of workers and employees of the country's ship-breaking industry as well as re-rolling mills have become unemployed.
In the wake of such a worldwide downfall of the scrap-iron industry, the crisis of scrap vessels has also been acute in India, Pakistan, China, Vietnam, Philippines and other Asian countries.
Out of around 80 ship-breaking yards of Bangladesh, only 20 to 25 are now operating. Of them, only a few of the yards are getting scrap vessels while the rest are lacking such vessels.
According to the concerned sources, there are around 45,000 sea-going vessels in the world, which include container vessels, cargo vessels and oil tankers.
On an average, the life-time of a sea-vessel is 29 years and after the 29 years of sailing in the sea, the vessel is declared scrap.
The ship-breaking industry began flourishing in Bangladesh in the 80s.
It was established in the country's coastal area under Sitakundu Upazila.
Millions of workers were engaged in various activities in about 80 ship-breaking yards there.
However, these ship-breaking yards were rather deemed the iron mine of Bangladesh and around 1.6 million tonnes of iron were procured from there annually.
Later on, due to a crisis of scrap vessels, irregularities, shifting of capital elsewhere, etc. the Sitakundu-based ship-breaking industry was gradually losing its momentum.
As a result, thousands of workers of the closed yards became unemployed.
While talking to the FE, Bangladesh Ship Breakers' Association (BSBA) Adviser Jafar Alam said prices of scrap vessels increased many times in the international markets and none was willing to import similar vessels at this stage.
He also expressed his inability to inform as to when the situation would improve.