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Tuesday, March 20, 2018

High Scrap Steel Pricing News

Tanker Scrapping is on the Rise -Vessels Value

© katiekk2 / Adobe Stock

Tanker demolition is on the rise as 3.5 million DWT has been scrapped so far in 2018, according to Vessels Value. Each factor played a part as the decision to remove a ship from service varies depending on the financial situation of the owner. Some may be motivated as the $/t offered price offsets enough of their remaining mortgage on a ship to allow them to move out of a low cashflow market, while others may remove a ship after it completes a long-term storage contract. Higher…

Plunging Scrap Steel Prices Hit Ship Recycling Revenues

Graph: China National Ship-recycling Association and China Daily

The Chinese ship recyclers are feeling the heat as falling scrap steel prices have eaten into their revenues during the past one year, says a report in China Daily. The increasing costs of adopting "greener" vessel-breaking method also adds to the woes, says China National Ship-recycling Association. The latest figures show ship-recycling revenue dropped 15 percent to 3.4 billion yuan ($519 million) in China last year. According to senior industry officials, the Chinese ship recycling sector was badly impacted by the continued weakness in steel scrap prices.

Brownsville Marine Products Hopes to Cash In

According to the Tribune Review, an aging barge fleet coupled with high scrap steel pricing and demand from the biodiesel and ethanol industries has launched a barge-building boom, the likes of which hasn't been seen since the 1970s, industry experts say. Brownsville Marine Products, LLC, of Fayette County, hopes to cash in on the construction boom, and is building barges as it can, carrying on a tradition of barge building on that stretch of the Monongahela River that began with the old Hillman Barge Co. in 1938. Nationally, a fleet of more than 27,000 barges moves over 800 million tons a year of raw materials and finished goods over the 25,000-mile inland waterway system, adding about $5 billion annually to the U.S. economy, according to the trade group.

Ship Recycling Prices Plunge 25%

Demolition Prices for elderly ships have fallen by a quarter in 2012 to date, and owners are encouraged to dispose of recycling candidates sooner rather than later, says Mark Williams of Braemar Seascope. Addressing the 7th Annual Ship Recycling Conference in London on 19th June, the Braemar Seascope Research Director told delegates that deflating international steel prices were likely to translate into lower offers for recycling tonnage in the coming quarters. Meanwhile, rapid reductions in the value of the Indian…

POSCO to Raise Steel Plate Prices

POSCO Co. Ltd., the world's fourth-largest steel maker, said it would raise the price of its steel plates for shipbuilding by 9.9 per cent, reflecting higher costs and strong demand, a Reuters report indicated. The South Korean steel maker will increase the price to $724.80 per tonne from $660, effective from October 25, the company said in a statement. Global prices of steel products, particularly for shipbuilding, have risen as shipbuilding yards have very strong order books in South Korea, China and Japan. Prices of raw materials such as iron ore, coal and scrap are also strong backed by brisk demand. POSCO, however, will maintain its prices of other key products, including hot-rolled and cold-rolled coil, in the fourth quarter. [Source: Reuters]

Chemical Tankers Market to Grow at a CAGR of 4.5% by 2022

Pic: Bahri (Saudi Arabia)

The chemical tankers market is projected to grow from USD 26.63 billion in 2017 to USD 33.11 billion by 2022, at a CAGR of 4.5% between 2017 and 2022, said a research report. The flourishing chemical industry and increasing use of water transportation for transferring chemicals from one place to another across the globe are the major driving factors for the growth of the chemical tankers market, said Report Linker. Chemical tankers market includes revenues earned through shipping of chemicals and related products.

Ship Scrapping Now a Money Maker

According to an April 8 report from China Daily, as the shipbuilding industry struggles to recover from the global recession, China's ship scrapping business has become a smorgasbord for both factories and investors. Ship breaking or ship demolition companies usually buy in vessels and sell the scrap to iron and steel companies nearby to book a profit. The price of iron and steel scrap has risen to more than $400 per ton from $150 per ton last year. (Source: China Daily)

S.Korea Dongkuk Cuts Rebar Prices

According to a Reuters report, South Korea's third-largest steelmaker, Dongkuk Steel Mill, said on Dec. 1 it would cut prices of rebar by 11 percent to bring prices of its construction steel in line with that made by a rival. Its local peer Hyundai Steel said on Nov. 28 it would cut prices of rebar by 11 percent, its second price cut in a month, due to weakening demand from the construction sector and falling prices of raw materials such as scrap metal. (Source: Reuters)

Dry Bulk Scrapping Rises

According to Braemar, 2011 is already a record year for dry bulk carrier demolition. In Jan-May 2011, 13.6m Dwt of bulkers have been scrapped, including 7.1m Dwt of Capesize (over 120k Dwt) bulkers. If scrapping continues at this pace for the balance of 2011, it could reach 32.6m Dwt, more than three times the previous record set in 2009. Demolition has previously peaked in years of credit crunches: In 2009, 11.7m Dwt of bulkers were scrapped following the global credit crunch. Scrapping was high even though prices per LDT were down on average for the year to around USD 260 compared to an average of around $370 in 2007. In 1998, 11.2m Dwt of bulkers were scrapped following the Asian financial crisis.

Capesize ‘Uptick’ Not Strong Enough for an Upsurge

April 19, 2016. The latest Dry Bulk Freight Forecaster from Maritime Strategies International* analyses the recent uptick in the Capesize market and considers the positive trends and mitigating factors. MSI finds the indicators are relatively positive in the short-term for iron ore trade. On the supply-side, iron ore prices of $50-60/tonne are in profitable territory for the big iron ore miners and will no doubt support the ramp up of new export capacity in Australia and Brazil. On the demand side, an uptick in steel prices and steel production in China in March underpins more positive sentiment. In addition, concerns of high iron ore stockpiles in China are overplayed…

Braemar Asks: Is Another Demolition Spike Due?

As the Baltic Dry Index plumbs all-time depths, those with long memories are recalling the dark days of the 1980s for the shipping markets. However, steel traders can look forward to a bumper year of supply of vessels for recycling this year, if previous experience offers a guide for the 2012 outlook. Bets are now being taken about how many vessels will be forced by the weak freight markets into the arms of recyclers. Globally, ship scrapping capacity has very big limits being a simple business of driving ships onto beaches and cutting them up with oxyacetylene torches.

British Gov't Met Potential Buyer for Tata Steel UK

The British government opened talks on Tuesday with potential buyers for Tata Steel's UK operations, including Sanjeev Gupta's commodities company Liberty Group, as it stepped up its battle to find a buyer for the loss-making business. Accused by opposition lawmakers of being "asleep at the wheel" when India's Tata Steel put its entire British operations up for sale last week, Prime Minister David Cameron also met ministers to discuss the options for a business which employs 15,000 people. Britain's business minister Sajid Javid met with Gupta in London to establish how firm his interest was in the business. He was later due to fly to Mumbai to meet Tata Chairman Cyrus Mistry to agree the process for a sale.

Busiest Capesize Demolition Market Ever

Peter Sand, Chief Shipping Analyst, BIMCO

The activity on the demolition market is off to a good start in 2015 when looking at dry bulk tonnage, according to international shipping association Baltic and International Maritime Council (BIMCO). The dry bulk market has long suffered from weak freight rates stemming from falling demand and an oversupply of ships. However, despite worsening freight market conditions, the demolition of dry bulk tonnage has not been adapting fully to this trend as could be expected, at least until now.

147 Vessels Sent to Shipbreaking

Photo: NGO Shipbreaking Platform

So far this year 147 vessels have been sent to the shipbreakers for their steel to be recycled, Telegraph reported quoting new data from Braemar ACM shows. A record number of container ships have been scrapped this year as owners battle a perfect storm of vast overcapacity and rock-bottom freight rates. The Telegraph report says that the scrapping spree has taken ships with the capacity to carry a total of 507,000 shipping containers – known as twenty-foot equivalent units or TEUs, the unit of measurement used in the industry – out of the global fleet.

Dry Bulk Outlook Remains Bleak: BIMCO

Graph Source: BIMCO

With 12 weeks of 2016 behind us, the dry bulk market is still looking bleak. As the current low demand for transportation of commodities continues, the market is doing what it can by scrapping old ships and restraining from ordering new ones. With only four newbuilding orders registered in the first 12 weeks of 2016, dry bulk contracting is merely a fraction of previous year’s activity. New contracts for dry bulk ships have been on a path of decline in the last year and a half. Currently culminating at a level that resembles a standstill.

More Ships to Leave Ghost Fleet

Two more ships are leaving the James River, headed for disposal facilities in Virginia and Maryland, in what has become a regular occurrence since the Bush Administration took over management of the nation’s ship disposal program five years ago, the U.S. Maritime Administration announced. The Howard W. Gilmore is scheduled to leave the James River Reserve Fleet at Fort Eustis on Thursday, making it the 50th ship to leave the river since January 1, 2001. It is one of the last World War II-vintage ships still at the fleet, which is good news for the ship disposal program, according to John Jamian, MARAD’s Acting Administrator. In a news conference at the fleet site today, Jamian said, “Our disposal efforts can keep moving to newer ships, which bring better prices in the scrap steel market.

Mack Manufacturing Self-Contained Scrap Handlers

five-tine orange peel grab to help scrap handlers and steel processors to hold and retain larger loads more efficiently.

Mack Manufacturing developed the original five-tine orange peel grab to help scrap handlers and steel processors to hold and retain larger loads more efficiently. Specifically designed for electric overhead cranes moving scrap in steel mills, the OPSISCH-350-5 grapple is a completely self-contained electric drive unit, ready for operation with a large 3.5 yard capacity. The grapple’s heat-treated alloy steel construction combines light weight for high efficiency and lift capacity with rugged strength, including heat-treated steel pins and shafts sized to ensure maximum service life.

Shipping Industry Slumps, but Ship Scrapping Looks Up

Alang, Gujarat: World's biggest ship breaking yard. Photo from Youtube video

While the shipping industry struggles through a historic downturn, ship scrapping business is seeing accelerating demand, reports WSJ. The global economic slowdown is putting shipping through its most bruising period since the 2008 financial crisis. With the capacity running some 30% ahead of shipping demand, orders for new vessels have fallen to a record low this year and companies can’t get rid of ships fast enough. In the five years to last year, owners ordered an average of 1450 ships annually.

Container Ships: 2014 Saw High and Low Scrapping

Image courtesy: The International Chamber of Shipping (ICS)

Container vessels have been a hot segment on the demolition market in recent years. The 1.1 million TEU scrapped the last three years alone covers half of the total sum since 1996. "2014 turned out to be a very hectic year for the demolition market and it became clear just how volatile the market really can be. Previous experiences tells us the end of the year is usually one of the busiest moments for scrapyards, however in 2014 this effect was washed out by declining demolition prices.

Demolition Age Drops as the Dry Bulk Market Enters Another Challenging Year

Graph: BIMCO

The dry bulk market faced a lot of headwind in 2015 as dwindling demand and over-supply created very unfavourable market conditions, says BIMCO. 2016 has shown no improvements so far and prospects for the rest of the year are not looking promising. With poor earnings across the board the average scrapping age has dropped among all the dry bulk segments. The capsize segment especially  has seen a big drop in the average scrapping age; dropping almost four years from an average age close to 25 in 2014 to less than 21 in 2015.

Trump to Set Hefty Tariffs on Steel, Aluminum Imports

© Amarinj / Adobe Stock

U.S. President Donald Trump announced on Thursday he would impose tariffs of 25 percent on imported steel and 10 percent on aluminum, in a move the administration said would protect U.S. industry, but which critics said would fail to boost jobs and risked stoking a trade war with China. Trump, speaking after a meeting with U.S. steel and aluminum makers said the duties would be formally announced next week. “We’re going to build our steel industry back and our aluminum industry back," he said. News of the tariffs drove the stocks of U.S.

Trump: U.S. Hits Steel, Aluminum Imports with Hefty Tariffs

© furuoda/Adobe Stock

U.S. President Donald Trump announced on Thursday he would impose tariffs of 25 percent on imported steel and 10 percent on aluminum, in a move the administration said would protect U.S. industry, but which critics said would fail to boost jobs and risked stoking a trade war with China. Trump, speaking after a meeting with U.S. steel and aluminum makers said the duties would be formally announced next week. “We’re going to build our steel industry back and our aluminum industry back," he said. News of the tariffs drove the stocks of U.S.

Euronav: VLCC Order Book Expands

Photo: Euronav

The challenging freight market during the third quarter came despite some encouraging signs with active scrapping of vessels returning (nine VLCCs scrapped plus one removed from fleet for FPSO project; six Suezmax scrapped during the third quarter) incentivized by a steel price at near three-year highs, says Euronav NV. This was supported by continued upgrades to crude oil demand with the IEA raising its forecast for 2017 from 1.2 mbpd to 1.6 mbpd over the course of the third quarter and U.S. crude exports again making further progress to record on average 933k bpd for the third quarter.

Maritime Reporter Magazine Cover Mar 2018 - Annual World Yearbook

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