As we enter the traditionally quieter monsoon season, it is of little surprise to see recycling
markets remaining inert and quiet, with rains / flooding hampering production at yards in
Chattogram and Alang labourers returning to their hometowns as recycling activities come to a seasonal crawl. This may have inadvertently triggered the recent leveling of sub-continent steel plate prices as steel output diminishes and plate prices stabilize / firm in reaction, reports GMS Weekly.
Global recycling
Although vessel prices have cooled off by USD 100/LDT in the sub-continent markets and about USD 250/MT in Turkey, global recycling sentiments remain in the doldrums given the rate of the recent declines. As such, there is no surprise to see minimal activity emanating from all markets at present, including the respective waterfronts that are displaying the shoddy state of current affairs.
Notwithstanding, global currency depreciations remain the primary source of heartburn for the ship-recycling communities, as the worrying declines on steel prices seem to have
comparatively stabilized and we hope it should start to show some signs of positivity in the
coming week(s).
Whilst there still remains a degree of caution and a prevailing nervousness to buy in local
markets, there are unlikely to be firm / serious offers for Owners and Cash Buyers alike, and this is part of the reason why even the marginal few candidates have started to dry up of late.
Of course, all freight sectors continue to be positively poised as most Owners are now passing drydock on their aging beauties, rather than scrapping their older tonnage even when recycling rates are at historically firm numbers.
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Source: GMS Weekly Report
