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


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