After a dire summer that saw over USD 100/LDT wiped off vessel recycling prices in Indian sub-continent ship recycling markets , nearly all of the markets have enjoyed an upward resurgence entering the fourth quarter of the year.
Impressive Deals
India has been the primary beneficiary of this recent resurgence with some stunning purchases, some even approaching the USD 600/LDT mark once again, reports cash buyer GMS.
As China too entered a holiday period, Indian local steel plate prices were the only ones to have traded this week and even gain marginal ground, all while the Indian Rupee remained relatively steady against the US Dollar.
Insights of GMS
“It is therefore unsurprising to see most of the tonnage head towards Alang, which remains the market of the moment with the top payers / players / performers and has been the most reliable destination for transacting lines of credit of all sub-continent markets,” says GMS.
“Pakistan has certainly come back into the picture of late and several end buyers have even managed to secure line of credit approvals to purchase five – six (mostly Panamax sized) bulkers. With those vessels successfully beached, Gadani subsequently endured a slight dip and cooling of local demand as bank restrictions resumed. However, as line of credit approvals seemingly start to filter through once again, we can expect sales to take place into Pakistan before the year is out.”
Steel Plate Prices
“Indeed, line of credit approvals are struggling once again as steel plate prices remain stranded well behind their competitors, to the extent that the BSBRA has had to temporarily halt the sale of inventory from local yards to domestic steel mills, in order to prevent underselling at these loss-making levels.”
Overall, the supply of tonnage has primarily been container ships over the last month, but as dry bulk vessels continue to trade at less than impressive rates, GMS has seen a steady introduction of vintage handy and Panamax bulkers, with capes seeming set to come as well.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source- Marine Link
