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Ship Recycling Prices Moving Higher, as Lack of Tonnage Still Evident

Ship recycling prices have reached higher grounds, as a result of persistent lack of vessels on offer. In its latest weekly report, Best Oasis (www.best-oasis.com), among the leading cash buyers of ships, said that “over the past week, the ship recycling markets across various destinations have exhibited diverse trends. In India, the market has seen a slight uptick, marked by a modest increase in demand for vessels, signaling a positive shift in market conditions. Conversely, Bangladesh’s market has maintained stability, with no significant changes from the previous week. The demand in Bangladesh is specifically keen on tanker and container vessels, pending financial confirmations for Letter of Credit openings, highlighting a cautious yet targeted approach to acquisitions”.

Source: Best Oasis

Best Oasis added that “Pakistan’s ship recycling sector has been notably subdued, a quietness stemming from the anticipation and eventual establishment of a coalition government. Market participants are now keenly observing how the new government’s configuration might influence market dynamics, amid a broader slowdown in demand for end products from ship recycling due to decreased activity in critical sectors such as steel and construction.

Turkiye, meanwhile, has faced a downturn, with both import and domestic market prices experiencing minor declines. The global financial landscape experienced a significant escalation in debt levels, culminating in an unparalleled peak of $313 trillion, as documented by the Institute of International Finance (IIF). The IIF’s findings indicate that approximately 55 percent of this remarkable increase in global debt can be attributed to advanced economies, notably the United States, France, and Germany, which stand out as the leading contributors”.

Source: Clarkson Platou Hellas

In a separate note this week, shipbroker Clarkson Platou Hellas said that “we have seen a slight upturn in price indications this week, most likely due to the dwindling supply of candidates. Reports suggest from local sources that only one or two new vessels have arrived at the official anchorage for recycling clearance in Alang, and no new units have arrived at Pakistan or Bangladesh. This certainly confirms the views that ship owners are making hay on their tonnage whilst the sun shines, the sun being the improving freight/charter rates and ever-increasing second-hand values, even on older units, due to the ongoing global dynamics”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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