The global shipping market, particularly the oil tanker sector, witnessed a rate decline this week. This downward trend is attributed to an oversupply of vessels. Additionally, ship recycling prices have remained low, further impacting the market, reports Marine Link.
Mixed Performance
Any sales that are being concluded are at numbers now dropping towards the mid USD 400s/LDT, with some facing even lower indications due to their poorer overall condition. Post-monsoon too has unsurprisingly bought little respite to ease the instability in the markets that many had been hoping would’ve been a lot more stable, says GMS. The markets have now lost well over USD 100/LDT on levels since the peaks seen over the year, where a container ship was sold above the highly coveted USD 600/LDT mark into Bangladesh.
“Cheap Chinese product also continues to stifle steel industries in both Pakistan and India despite restrictive tariffs being set into place. Moreover, as Pakistan’s economy continues to crumble amidst IMF loan hurdles, dithering foreign currency reserves, and reports of mismanagement of funds, both India and (especially) Pakistan are unable to prevent the continued dumping of underpriced Chinese billets into their respective markets.”
The pending outcome of the U.S. elections has already seen mixed performance from the U.S. dollar across ship recycling nation currencies. Consequently, end buyers remain logically reticent to commit at these present lower levels even now, rightly fearing inevitable market instabilities as plates continue to dance around.
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Source: Marine Link
