Demolition Activity Keeps Increasing
In a separate note, shipbroker Intermodal added that “the demolition market has seen another healthy week. Demolition scrap prices are en route to recovery from the downturn in the 2020 February to April lockdown period. Rates this week remained constant in Pakistan whereas increases in scrap prices were observed in India, Bangladesh, and Turkey. The overall demo market’s upward trajectory can be attributed to recent increases in steel prices coupled with lack of available demo candidates. In India, some vessels intended for green recycling emerged and demolition rates increased, forming the second highest demo rates in the market. Pakistani breakers are still offering the highest demo rates as opposed to breakers from competing countries. On a final note, Turkish cash buyers are also offering higher week-on-week scrapping premia despite the increasingly depreciating Turkish Lira. Average prices in the different markets this week for tankers ranged between $200-345/ldt and those for dry bulk units between $195-330/ldt”.
Meanwhile, GMS, the world’s leading cash buyer added that “despite the highest daily record of Covid-19 cases being reported across the globe in a single day and an increasingly worrying situation in India, the subcontinent ship recycling markets (and Turkey) continue to push on. All markets are now pointing in a positive direction, following the excessive losses witnessed during the pandemic where about USD 150/LDT was rapidly knocked off levels across all sectors. Just last week, the price of scrap steel has started to rebound (posting some of the highest numbers we’ve seen this year), currencies are stabilizing and demand has started to tell across all sectors as End Buyers realize they need to book their plots with units at the current levels, before markets continue to jump even higher. Cash Buyers have finally managed to sell off a lot of their existing (and previously loss making) inventories, whilst new units are being committed at increasingly impressive numbers. There were indeed rumors this week of one Panamax container being sold into India, at a price into the USD 360s/LDT, as Alang surges by almost USD 20 – USD 25/LDT, in the space of this week alone”, GMS concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide