Ship Recycling Market Continues “Dark Year”
For the second running week and on the back of firming Chinese plate prices last week, ship recycling markets felt some positive moves as local plate prices remain on a positive to firm footing across the board, reports cash buyer GMS.
However, increasing magnification into local markets proved to be a reality check, says GMS, due to the ongoing lack of tonnage that has been typical of this “dark year” in ship recycling.
“After the U.S. Fed rate cut of 0.5% on interest rates a couple of weeks back and global currencies took a moment to adjust, this week, nearly all recycling nation currencies resumed their depreciations against the U.S. Dollar adding further jitters to a skirt of tonnage that is barely covering the ship recycling body.”
The Indian markets witnessed the most positivity of the week, but any gains seem destined to being stalled with the general expectation that the market has reached a state of equilibrium.
Bangladesh continues to slip landing at last place in the market rankings, whilst Pakistan (perhaps reactionarily) responded to firming plate prices in China from recent weeks, recording improvements of their own that were followed by firming prices from Gadani as well.
Turkey at the far end reported further improvements in steel, drops in TRY, and firming prices, all in the hopes of enticing tonnage once again.
As global stock markets rally in the wake of announcements on economic stimuli in China in the wake of measures being set in place for the 75th Anniversary of CCP rule, the ongoing October holidays (in China) have stalled any positive moves that may otherwise be in the process of being garnered.
“And with oil expected rise, could tankers for recycling become the diet for Q4 or even 2025? Time will tell. For now, the world turns cockeyed, with one eye on how China opens after the holidays and the other on the Middle East, where a wider war now seems imminent.”
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