Scrap Metal Prices
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Saturday, February 10, 2024
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Monday, January 23, 2023
Ship Breaking Prices and Market Summary Jan 23 2023
MARKET COMMENTARY
SEEKING
SUPPLY!
A degree of increased
positivity has entered recycling markets this week, as prices push on in both
India (off the back of firming steel and settling currencies) and Bangladesh
(off of a rising demand and a currency that has recently found its stability around
BDT 105).
In fact, a number of sales
have reportedly even taken place at increasingly firm numbers, giving Ship
Owners a greater sense of confidence to offer their recycling candidates up for
sale, especially after an altogether bleak 2 quarters.
Financing problems persist
in both Bangladesh and Pakistan, but End Buyers in both locations are
endeavoring to find alternate solutions (rarely successful at this stage) to
open L/Cs (including private financing not going through government banks,
foreign currency L/Cs and even usance L/Cs), now that markets seem to be
stabilizing and even firming up again.
Plots across most locations
remain fairly barren after one of the slowest years (in terms of recycling
volumes) in decades and as such, demand for new units is ramping up across all
markets and as prices increase, so too do the number of available candidates
for sale after a relative dearth at the end of last year.
Even in Turkey, despite a
drop in steel plates and a currency that has been relatively unchanged for the
last couple of weeks, prices have held their ground amidst growing news of
units being talked about basis a Spring delivery.
Overall, the supply of
vessels is mostly coming from the container sector (with another sold this
week) and an increasing number of HKC green sales – thus putting the deal focus
squarely on Alang for another week. Moreover, as dry bulk charter rates weaken
and we enter a period of relative inactivity due to Chinese New Year holidays,
we do expect to see even more dry candidates heading the recycling path in the
weeks / months ahead.
For week 3 of 2023, GMS demo rankings / pricing for the week are
as below.
Rank |
Location |
Sentiment |
Dry Bulk USD / LDT |
Tankers USD / LDT |
Containers USD / LDT |
1 |
India |
Positive |
540 / LDT |
550 / LDT |
560 / LDT |
2 |
Bangladesh |
Improving |
535 / LDT* |
545 / LDT* |
555 / LDT* |
3 |
Pakistan |
Weak |
525 / LDT* |
535 / LDT* |
545 / LDT* |
4 |
Turkey |
Weak |
300 / LDT |
310 / LDT |
320 / LDT |
*Subject L/C approval
To read the remainder of the GMS WEEKLY, please visit https://gmsstagecdn.ams3.cdn.digitaloceanspaces.com/uploads_prod/weekly/Ship-recycling-market-insight-week-03-2023-Seeking%20Supply.pdf