Ship boat

Ship recycling also takes a vacation

As the holidays fell across much of the subcontinent over the past week, business and sales understandably slowed as the recycling industry enjoyed some respite.

To be sure, the recently bubbling Bangladeshi market has fallen out of favor over the past month as sentiment and domestic prices have suffered a sustained decline, despite having dominated the industry for much of this year.

Instead, it is the rampant Pakistani and Indian markets that continue to lead the way and continue to pay the most impressive figures near (and even above) $700/LDT (in some cases).

After missing out on much of the market tonnage to Bangladesh in recent months, local shipyard capacity remains healthy in both Alang and Gadani. As such, greedy recyclers scavenge the scarcity of available units to increasingly firm numbers.

Indeed, freight markets remain so impressive that a slight lull has recently settled over the industry (in terms of fresh market sales). Tanker rates on some routes have also started to fly again and, coupled with an admirably performing container and dry bulk sector, recycling markets are starved of the bulk of firm, exploitable age-appropriate tonnage.

Sadly, to the ‘right’ of the globe, belying the aggression of subcontinent markets, is Turkey which continues to struggle through a surprising week of declines, with steel plate prices and ship tenders plummeting. around $400/MT.

For Week 16 of 2022, the GMS Demo Rankings/Awards for the week are as follows.