Recycling market hit by holiday period

Sep 15 2017


The conclusion of Eid holidays failed to bring the necessary price improvements that the recycling industry had witnessed for several weeks and one that many cash buyers had increasingly been hoping for, GMS said in its weekly roundup.

Prices in Bangladesh - which is yet to fully open again post-Eid, expected around the middle of this week - remained stagnant.

 

The majority of the market offerings continues to be wet or offshore units – meaning only Bangladesh and India remain the viable locations for these units given the ongoing ban in Pakistan still in force and Gadani recyclers not willing to pay as competitively/less keen on offshore units.

 

There is also an increasing supply of green vessels for Hong Kong Convention recycling. Indian buyers have been focusing their acquisition efforts on these vessels of late, especially as a growing number of sellers wish to see their vessels scrapped at the higher standards, even if this means accepting a marginal compromise in price.

 

All sub-continent markets have managed to secure their share of sales last week, even as (marginal) activity continues after the holidays. However, most expect that next week will reveal where demand, sentiments and prices finally settle.

 

Fundamentals remain firm across all locations – the Indian Rupee even dipped below the Rs64 mark against the US Dollar, in further encouraging signs last week. While steel pate prices endured a few jitters in Bangladesh, local expectations are that things should recover in the coming week(s) once domestic mills reopen after the prolonged Eid holidays and the constant flooding/rains gradually slow with the upcoming conclusion of monsoon season, GMS concluded.  



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