- Amid strong demand and limited supply demo prices are soaring to near record prices.
- Prices of up to $660 per ldt have been paid for tankers over the past week.
- Potential remains for price indications to rise further in the coming weeks, if the supply of tonnage to the recycling market remains limited.
Amid strong demand and limited supply demo prices are soaring to near record prices in Bangladesh and Pakistan, says an article published on splash247 website.
Prices are soaring
Prices of up to $660 per ldt have been paid for tankers over the past week. BULL of Indonesia let go of the Petrogaruda aframax in Bangladesh for what cash buyers GMS described as a “fantastic” $650 per ldt, while in Pakistan the Polemis-controlled New Inspiration VLCC fetched an “extraordinary” $660.
“Steel plate prices across the board have been a key driver to the spectacular showings of late, as construction / infrastructure projects ramp up once again, with the worst of Covid-19 and its associated lockdowns and restrictions, seemingly easing of late,” GMS noted in its most recent weekly report.
“With the domestic steel demand in India increasing at an unprecedented rate, the end buyers are well positioned to compete with buyers from Pakistan, where prices are still range bound. Bangladesh is leading the price board owing to the resumption of construction activities and supportive finished steel prices,” a report from another cash buyer, Best Oasis, stated.
Clarkson Research Services suggested that prices could escalate further, noting in a recent report: “Potential remains for price indications to rise further in the coming weeks, if the supply of tonnage to the recycling market remains limited.”
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Source: splash247
