Pakistan Leading Demolition Market Price-Wise


Pakistan Leading Demolition Market Price-Wise | Hellenic Shipping News Worldwide

in Hellenic Shipping News 11/09/2020

Ship owners looking to scrap their older vessels, are more likely to find a good deal in the Pakistani scrapyard market. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “it has been a week emphasizing how this market is ever changing and volatile, ensuring it always difficult to know a vessels true market value. This has come about following a change in sentiment this week with some conservatism on rates coming into force again. It has been reported that the domestic steel markets are quivering at the prices being seen in the international market and fears remaining in the Sub. Continent regions, particularly India, regarding the continuing rise of Covid-19 cases and the handling of the virus and importantly, how they intend to deal with the upcoming Winter. Some hesitancy has also encroached Bangladesh where local recyclers remain cautious at present which is mainly attributed to the large Cape and VLOC’s acquired earlier in the year and yards still digesting this large LDT tonnage”.

Source: Clarkson Platou

According to the shipbroker, “Pakistan still remains the most eager destination for vessels, and the strongest in terms of price levels, of all three Sub-Continent markets, however, some question marks have been raised concerning recent ‘high priced’ acquisitions which is reportedly leading to a ‘standoff’ between the cash buyers with tonnage in hand and the recyclers. We would stress also that the large Bulk carrier sales that were reported in some media outlets and market reports last week seemed to have excited many without knowing the context of the deals concluded and creating an artificial market. With the two reported capesize units sold, there is an option to trade these units further which it is understood the Buyers will be take up and fix them both on charter due to the firming freight markets. This also goes for the Panamax concluded in the sale which ties in with the two Cape bulk carriers as a package and thus not a market related price and just one to watch until she inevitably arrives at a recycling destination. With little supply of vessels on the horizon however, prices have a chance of recovering from the slight decline seen this week and hovering around the mid USD 300’s as many Cash Buyers have very little in hand and this is contributing to their frustration which could inevitably lead to some panic buying from some”, Clarkson Platou Hellas concluded.

In a separate note, Allied Shipbroking added that “we are starting to note a divergent pattern emerge between the dry bulk and tanker sectors in the ship recycling market. In the case of the former, the improved sentiment and healthier freight earnings have curbed interest amongst owners of vintage dry bulk tonnage. However despite this, this past week we noted a significant number of dry bulk units being scrapped. In terms of the latter, the uninspiring performance of freight rates has led owners of vintage tanker units to negative PnL accounts, pushing them to take up the retirement option for some of the older units. Meanwhile, the recent improvement in offered prices has been a bullish factor that has already increased activity in the Indian Sub-Continent. Bangladesh, which was leading the market during the first half of the year, has seen its market share reduced due to improved fundamentals in other destinations. However, it remains a robust option and we expect activity in the country to retain at fair levels. At the same time, India continued being the top option for green recycling. The increased offered prices and the stability of fundamentals as of late have increased optimism amongst local breakers. Finally, the unexpected strong return of Pakistan seems now to not be just a temporary affair. Activity from local breakers there remains robust and this is expected to continue throughout most of the final quarter of the year”, the shipbroker noted.

Meanwhile, in a separate note, GMS, the world’s leading cash buyer of ships said that “a whole raft of sales have reportedly been concluded over the past week or so and into all markets, as subcontinent recycling locations finally get back into the groove after the prolonged absence and declining rates witnessed during the peak of the Covid-19 crisis this year. Following a first half of the year that was dominated primarily by containers and PCTCs (for HKC green recycling), it is noticeable from the sales board this week that the number of tankers for recycling is starting to increase as well. Prices have been on a dramatic upward curve over the last several weeks, clawing back the nearly USD 150/LDT of losses sustained during the second quarter of the year. However, amidst an improving supply of vessels, levels appear to have steadied / stabilized in all subcontinent markets around the mid USD 300s/LDT for the time being. Even levels from the Turkish market made a mild improvement this week, as local offerings jumped despite the Lira weakening to record lows against the U.S. Dollar”, 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  ,