Ship Recycling Markets Face Varied Fundamentals
This week, various holidays concluded across the globe just as Indian sub-continent ship recycling markets started to perk up amidst fundamentals that have independently enjoyed varying degrees of volatility and resurgence over recent weeks, reports cash buyer GMS.āSteel plate prices in Bangladesh and Pakistan remained flatlined at respectively firm levels - the effects of which has only helped these markets grab their share of high-priced fixtures since the start the of the year - all while the ever-volatile Indian plate price that fell last weekā¦
Scarcity of Ship Recycling Tonnage Continues
Despite the occasional smaller LDT candidate popping up for sale over recent weeks, there regrettably remains the ongoing scarcity of tonnage that is simply unable to fill the most basic of demands at the major ship-recycling destinations, reports cash buyer GMS.āAs plots across Indian sub-continent markets gradually recycle through their respective shares of vessel deliveries through the first quarter of 2024, both Bangladeshi and Pakistani markets remain well-positioned despite the onset of the traditionally quieter month of Ramadanā¦
Bangladesh and Pakistan Ship Recycling Markets Remain Steady
With the conclusion of week 11, the ongoing and seemingly endless dearth in the supply of viable candidates has been mercifully keeping the Bangladeshi and Pakistani ship recycling markets steady, reports cash buyer GMS.āOn the other hand, the Turkish and Indian markets continue to endure their respective shares of a notably trying time, given that the Turkish Lira continues to plummet even amidst a mercifully quieter week (on account of Ramadan).āGMS says: āIndia continues to endure its share of nerve-racking volatility in local steel plate prices as well as the Indian Rupeeā¦
Subcontinent Ship Recycling Market Remarkably Quiet
Despite the Pakistani & Bangladeshi markets stabilizing and displaying a far greater aggression at the bidding tables over the last five weeks, it has been a remarkably quieter start to 2024 for ship recycling than many had anticipated, says cash buyer GMS.With Houthi attacks, trading markets have remained unseasonably firmer, thereby delaying the historical āpost-New Year aggressionā from the sub-continent ship recycling markets that the industry has become accustomed to overā¦
Ship Recycling Market Impacted by Middle East Situation
Bangladeshi and Pakistani markets have been making noticeable improvements over recent weeks, but there remains an ongoing shortage in the global availability of āmarketā tonnage for ship recycling, reports cash buyer GMS.As evident from the number of arrivals and beachings this week, an increasing number of ship recyclers have clearly managed to and are reportedly still in the process of obtaining further approvals on L/Cs from their respective banks. āAs a result, there is now a noticeable disparity in offers emanating from recyclers from the same sub-continent destinationā¦
Signs of Recovery for Ship Recyclers in 2024
After what has been an overall miserable 2023 in the ship-recycling industry and even worse six-month tail end, 2024 seems to be off with just a little more hope and a chance at recovery as positive signs seem to permeate through the markets, says cash buyer GMS.Critical factors such as declining currency values (except in India), flatlining / declining local steel plate prices, and the dreadful (and ongoing) lack of funding on fresh acquisitions (in Bangladesh and Pakistan), all came together over the course of the summer / monsoon months of 2023.
GMS: Steel Plate Prices Not Yet as High as Hoped
As Diwali holiday celebrations concluded, Alang recyclers seem to slowly be filtering back to work amidst declining plates prices, sentiments, says cash buyer GMS, and local offerings that remain stagnant.āUnfortunately, this remains the ongoing dilemma across much of the Indian sub-continent ship recycling markets, especially as steel plate prices are yet to gain ground to the extent many in the industry had been hoping for thus far, whilst currencies simultaneously continue to cause ongoing worries for respective domestic markets.āOn the flip sideā¦
Ship Recycling Markets Remain Muted
Markets remain precariously poised as Diwali holidays occupy the sub-continent markets and the industry heads into the final months of the 2023, says cash buyer GMS. Although several sales have reportedly registered into India at some impressive levels, sentiments and pricing here remains muted overall.āOn the Eastern end and in the lead up to the Bangladeshi elections due in mid-January 2024 - disruptions, protests, and even strikes have embattled the country and as such, it is expected to become even more challenging to get lines of credit open and deliveries completed into Chattogramā¦
Ship Recycling Market Cools
Inflation, fundamentals, currencies (except in India), vessel pricing, and overall weakening sentiments have beset the ship recycling market over the past week, reports cash buyer GMS.The effects have been felt across all the sub-continent ship-recycling destinations (even Turkey to an extent), which have cooled by about US$ 20/LDT over recent weeks, says GMS. However, India and Bangladesh have reported surprising increases in steel plate prices over the last week.āSeemingly on the back of global steel plate pricesā¦
GMS: Pakistan and Bangladesh Lagging Behind Alang
As deals continue to be concluded into Alang, the Indian ship recycling sector remains on a positive footing overall, with Pakistan and (especially) Bangladesh still lagging behind, reports cash buyer GMS.Despite steel plate prices coming off by about US$ 11/Ton and the Indian Rupee weakening marginally over the course of the week, the overall outlook for India remains positive.Several ship recyclers from the sub-continent markets were gathered at the annual Tradewinds Ship Recycling Conference in Singapore this weekā¦
Ship Recycling Market Surges
After a dire summer that saw over USD 100/LDT wiped off vessel recycling prices in Indian sub-continent ship recycling markets (and even Turkey to an extent), nearly all of the markets have enjoyed an upward resurgence entering the fourth quarter of the year.India has been the primary beneficiary of this recent resurgence with some stunning (container) purchases, some even approaching the USD 600/LDT mark once again, reports cash buyer GMS. As China too entered a holiday periodā¦
GMS Reports Feverish Buying in Ship Recycling Markets
Cash buyer GMS reports another week of āastonishingā activity in sub-continent ship recycling markets, with owners and cash buyers primarily focusing on the Indian market where several extraordinarily priced container sales reportedly took place over the recent weeks.The $600/ton mark was even exceeded on a container unit once again, in what seems to be the surest sign yet, that sentiments and demand in Alang are back on track, says GMS.Pakistan is not too far behind India, with some select dry bulk sales to Gadani recyclers who are now re-emerging and have line of credit approvals in placeā¦
India and Pakistan Ship Recycling Market Bullish
Bullish buyers in both, the Indian and Pakistani markets, continue to push on for another week as they manage to secure some of the recently recorded, high-priced sales from both the dry bulk and container sectors, reports cash buyer GMS.āSome of the recent container sales in particular have caught the eyes of many in the industry, especially as levels gradually edge back up into the high USD 500s/LDT (approaching USD 600/LDT), thereby providing prospective owners of vintage unitsā¦
A Glimmer of Optimism Shines in Ship Recycling Market
A glimmer of optimism seems to have been aroused in the sub-continent ship recycling markets this week, reports cash buyer GMS.The sentiment comes as several units were reportedly concluded to optimistically fervent cash buyers (at increasingly firmer levels) who are perhaps eager to book tonnage pre-Monsoon end. This could potentially satiate some of the forthcoming increase in demand from the sub-continent markets once the traditionally busy year-end / Q4 kicks in.āSeveral salesā¦
Ship Recycling: Prices Continue to Fall
Prices continue to struggle across the major ship recycling markets, reports cash buyer GMS.Bangladesh further declined after depreciating currencies and sustained credit struggles, while Turkey suffered similarly with declining steel plate prices, the Lira, and its vessel prices.The supply of tonnage seems to have increased slightly over the last couple of weeks, particularly from the Chinese market. This has left owners and cash buyers chasing various recycling destinations amidst weakening prices.As forecasted a few weeks agoā¦
Recycling Quiet After Eid Holidays
With many sub-continent yards still closed after Eid holidays, mixed in with the ongoing monsoon season, cash buyer GMS reports a lack of tonnage and an inactive week in the ship recycling market.Most of the year has been quiet for recycling sales, and prices being quoted are so unworkably below market expectations at present, a bounce back anytime soon seems unlikely, says GMS.āAs such, before proposing any further candidates, most cash buyers and (especially) ship owners have decided to continue to wait and watch the markets for greater stability and a better handle on pricing.āMeanwhileā¦
Ship Recycling Challenges Mount in Bangladesh
The results of this most recent market decline have been on full display this week as those vessels previously sold at higher prices are now struggling to deliver in a U.S. dollar starved Bangladesh (and Pakistan) and end buyers are starting to (expectedly) create unnecessary turbulence at the waterfront, especially on those high-priced incoming units.Steel plate prices continue to dither across all markets (including Turkey) over the past month or so, leaving the various recyclingā¦
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Bangladesh Powers Ship Recycling Market
It is the Bangladeshi market that has been impressing everybody of late (and for yet another week) with a lot of pent-up demand being realized and even news of some choice purchases at decent numbers on units that have managed to receive L/C approvals.Indeed, we have once again seen levels over $600/LDT in Bangladesh for the first time since the same time last year, and competing markets are increasingly struggling to keep up.India has been trying its best too and has managed to secure a number of HKC green sales this yearā¦
Ship Recycling Market Slows
As the ship recycle market enters a period of contraction going into the traditionally weaker and quieter summer / monsoon months, sentiments have declined across the sub-continent markets (and even Turkey) this week, according to GMS. To compound the bearish ship recycling sentiments, local steel plate prices have further weakened at key destinations and LME steel futures show few signs of any sort of recovery in the immediate future.That said, several vessels have been working firm over the past few weeks and sales have been taking place.
Ship Recycling Prices Perk Up
Following a virtually inert 2022 and a slightly busier start to 2023 at the various recycling destinations, much of the Far East was off celebrating Chinese Lunar New Year holidays this week and it has expectedly been a quieter period - in terms of sales and activity.A larger number of container vessels have so far been sold for recycling at the start of the year, and we are beginning to see signs that older dry bulk vessels with surveys due may follow suit in the near future as well.Additionally, following a glut of tanker vessels concluded for recycling at the beginning of 2022, this is the
Ship Recycling Endures a Turbulent 2022
Like much of the world, one word adequately describes the ship recycling market in 2022: turbulent.According to GMS, prices reached decade long peaks above $700/LDT in the first quarter of the year before crashing back down by about $200/LDT, with certain trades seeing below the $500/LDT barrier and even into the high $400s/LDT on certain occasions.On the West End, the situation was no different in Turkey, where levels too hit a record $500/Ton for a brief period, only to plummet about half in value (about $250/MT) in a rather short periodā¦
Ship Recycling Market Continues to Improve
Another solid showing from sub-continent markets has given encouragement to ship owners and cash buyers, to start testing potential prices with firm candidates. Indeed, several deals have been concluded off the back of these improved numbers, including one more Capesize bulker at firm levels basis an āas isā Singapore delivery.Now that the Chinese New Year holidays have concluded, the expected bounce in freight markets has yet to materialize, so an increased number of dry bulkā¦