Ship Recycling Market Ends Summer of Discontent

0 comments

Ship Recycling Market Ends Summer of Discontent

in Hellenic Shipping News 05/09/2019

The ship recycling market hasn’t had the best of summers, when it comes to the level of activity noted. In its latest weekly report, shipbroker Allied Shipbroking said that “for yet another week the flow of demo candidates remained at relatively low levels, leading to a final close of an overall lackluster summer period for the ship recycling market. This, of course, can be seen as mere reflection of a falling Indian Sub-Continent market. Moreover, the decreased appetite by end buyers can be seen from the drop in quoted numbers. The monsoon weather has as always played its part, though it seems as though this has been only part of the story this year. In India, sentiment has been on a downward spiral for some time now, given the softened local steel prices (despite the slight increase noted the last few days) and negative local currency movements. The Bangladeshi market has been preoccupied with handling its current inventory, unable to push things further at this point. While Pakistan, despite the fact that has been in a relatively better position in terms of taking the lead, its current sluggish mood has made any strides difficult to achieve. For the time being, the firm dry bulk freight market may create an even stringer availability of potential candidates, something that could eventually help push scrap prices to edge up at some point in the upcoming weeks”.

Meanwhile, in a separate report, the world’s leading cash buyer of ships, GMS, said that “prices remain marooned in the mid USD 300s/LDT as a sluggish summer of offers and sentiments in the global ship recycling markets nears an end. Cash Buyers with expensive and large LDT vessels to sell are still hoping for a U-turn in fortunes as the industry enters the 4th quarter of the year. However, it is unmistakable that the previous pricing realities in the mid USD 400s/LDT from earlier in the year are likely not going to return any time soon”.

GMS added that “the only positive is that with freight rates remaining firm, there has been a considerable decline in the supply of potential tonnage (especially as the BDI makes some noteworthy gains this week) and the current pricing trend in the mid USD 300s/LDT has essentially been ineffective in tempting Ship Owners with aging units to sell their ships at this time. While Bangladeshi steel prices have not suffered a fate similar to their Indian counterparts, their VAT related issues continue to linger, despite the BSBA’s confidence about overturning the ruling that was delivered during their annual budget back in June. Moreover, a healthy amount of previously delivered tonnage remains positioned at local yards, with the constant rains still making it a challenge for local Recyclers to shift product over the summer months. Of all the subcontinent markets, India has endured the toughest of times, with local steel prices crashing by about USD 75/LDT since early July and the currency too has depreciated from Rs. 69 to (briefly) over Rs. 72 against the U.S. Dollar, in a damaging turn of events.

Source: GMS

Winding up the subcontinent recycling locations is the Pakistani market, which willfully remains out of the game as the overall lack of confidence to jump back into the buying after over a year on the sidelines has resulted in minimal offers emerging from local Buyers. Finally, the Turkish markets ongoing sufferings were further aggravated this week with local plate prices and the Lira both taking turns at deteriorating for the worse, with imminent vessel price declines surfacing on the horizon. Local port reports testify to a dwindling supply of vessels arriving subcontinent locations (with NO new arrivals in Alang this week as well as Chattogram last week, for the first time in ages!) and this should potentially allow the vessels already at Bangladeshi yards to finally be digested and demand to return – as the 3rd quarter of 2019 bids us adieu”, GMS concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

Leave a Reply

SSCP   CAS-002   9L0-066   350-050   642-999   220-801   74-678   642-732   400-051   ICGB   c2010-652   70-413   101-400   220-902   350-080   210-260   70-246   1Z0-144   3002   AWS-SYSOPS   70-347   PEGACPBA71V1   220-901   70-534   LX0-104   070-461   HP0-S42   1Z0-061   000-105   70-486   70-177   N10-006   500-260   640-692   70-980   CISM   VCP550   70-532   200-101   000-080   PR000041   2V0-621   70-411   352-001   70-480   70-461   ICBB   000-089   70-410   350-029   1Z0-060   2V0-620   210-065   70-463   70-483   CRISC   MB6-703   1z0-808   220-802   ITILFND   1Z0-804   LX0-103   MB2-704   210-060   101   200-310   640-911   200-120   EX300   300-209   1Z0-803   350-001   400-201   9L0-012   70-488   JN0-102   640-916   70-270   100-101   MB5-705   JK0-022   350-060   300-320   1z0-434   350-018   400-101   350-030   000-106   ADM-201   300-135   300-208   EX200   PMP   NSE4   1Z0-051   c2010-657   C_TFIN52_66   300-115   70-417   9A0-385   70-243   300-075   70-487   NS0-157   MB2-707   70-533   CAP   OG0-093   M70-101   300-070   102-400   JN0-360   SY0-401   000-017   300-206   CCA-500   70-412   2V0-621D   70-178   810-403   70-462   OG0-091   1V0-601   200-355   000-104   700-501   70-346   CISSP   300-101   1Y0-201   200-125  , 200-125  , 100-105  , 100-105  , CISM   NS0-157   350-018  , NS0-157   ICBB  , N10-006 test  , 350-050   70-534   70-178   220-802   102-400   000-106   70-411  , 400-101   100-101  , NS0-157   1Z0-803   200-125  , 210-060   400-201   350-050   C_TFIN52_66  , JN0-102  , 200-355   JN0-360   70-411   350-018  , 70-412   350-030   640-916   000-105   100-105  , 70-270  , 70-462   300-070  , 300-070   642-999   101-400   PR000041   200-101  , 350-030   300-070  , 70-270  , 400-051   200-120   70-178   9L0-012   70-487   LX0-103   100-105  ,