Recyclers Unwilling to Make Firm Offers
This week, recycling markets essentially became an unfeasible business-place as very few recyclers were willing to table any firm offers, reports cash buyer GMS.
Instead, they only tabled low-ball indications as main continued waiting and watching the market before deciding which direction the domestic industry is headed.
There remain several unsold units that are currently being diverted to other destinations from Bangladesh, including India, in additional to a recently re-emerging Pakistani market.
Owners with vessels to sell are being price-shocked into diverting their vessels to another market or withdrawing them from the market entirely due to a lack of sensible offers. “We could therefore be entering a bleaker period of sales and activity through August, especially whilst this standoff in prices persists, and congestion abounds,” says GMS.
Deliveries have started to become troublesome as well, particularly for those units sold at recently higher prices. Painful renegotiations are being reported at the waterfront.
As such, it is an extremely frustrating and fraught market at present for owners and cash buyers alike.
Lines of Credit also remain an area of concern in Bangladesh, as it has been taking much longer to get approvals over $5 million these days, and this is leading to delays in obtaining offers and getting vessels delivered.
For week 31 of 2023, GMS demo rankings / pricing for the week are as below.