Sudden Influx of Tonnage to Ship Recyclers
On the back of freight markets that are finally facing their first set of 2024 jitters, the industry is gradually witnessing an increasing number of units being proposed for a recycling sale, all of which are being confirmed via the sudden influx of tonnage at the Indian and Bangladeshi waterfronts this week, reports cash buyer GMS.
This coms just as the Pakistani market (as expected) starts to fall behind on its domestic arrivals. At this rate, India looks set to sneak past the Pakistani market in the rankings, says GMS.
“Notwithstanding, the increased inflow of tonnage and subsequent (market / private) fixtures into the sub-continent recycling markets, there seems to be a slight mismatch in terms of price expectations vs. various market realities.”
Subpar, poorer condition units are not only seeing prices discounted in line with their reality, but some are even facing lower than expected levels. “As such, we are now witnessing a standoff between over exuberant cash buyers, shipowners, and increasingly reticent ship recyclers.
“Meanwhile, after weakening in unison only last week, recycling nation currencies started to oddly firm up this week, and Indian local steel plate prices continue their evergreen firmy-floppy dance as juicier tonnage starts to trickle back into the fray.”
During the first four months of the year, GMS has seen record low deals done amidst impressively performing freight sectors and ongoing geopolitical events that have helped vintage assets find continued profitability via further employment, resulting in recycling markets being choked of their usual share of the recycling tonnage that they were historically accustomed to during this time of the year.
Turkey, on the far end, though still quiet, is finally seeing its share of discussions at the bidding tables as fresh, small(er) LDT container ships and general cargo units are now on offer.
“Overall, the status quote for the recycling industry remains relatively twinned from that of last week, with sales at a premium still at large, and an existing demand that seems content waiting for the perfect vessel.”
For week 17 of 2024, GMS demo rankings / pricings are: