Stable Demolition Rates Could Trigger More Vintage Tanker Sales
On top of the continuing strong dry bulk / container sectors, supply could well outstrip demand in the later part of the year. + Some congratulations are in order as the PHP Ship Breaking and Recycling Industries were given an award this week by the Ministry of Shipping in Bangladesh for Special Contribution on Green Ship Recycling. It is an incredible feat for the PHP family having single-handedly promote green ship recycling in Bangladesh despite much negative pressure from the environmental organisations. Some parties questioned whether such a yard could be successful in Bangladesh, but the PHO Group have certainly shown anything is possible with hard effort and endeavour”, Clarkson Platou Hellas concluded.
In a similar note this week, Allied Shipbroking added that “the volume of tanker units sent to scrapyards remained elevated for yet another week, in an attempt by many to offload their more vintage units, given the compounding losses being seen. The demand for wet cargoes has not followed yet the rebounding momentum of other key segments and thus tanker units remain the main pool of potential scrap candidates. The attractive demolition prices are making this decision easier for owners and it is expected that the current trend will hold during the final quarter of the year. Bangladesh was able to once again attract the majority of demo units, even if competitors have started to improve their position.
India retains its place as the top option for green recycling and given that offered prices have improved during the last few weeks, owners have returned their focus there as well. Meanwhile, it is worth stating that Diwali celebrations are approaching, something that is likely going to effect activity moving forward. Finally, Pakistani scrapyards, which have increased their business activity by an impressive amount during the year, continue to offer attractive terms and prices, keeping them firm in the midst of the competition for the time being”, Allied concluded.
Meanwhile, in a separate note, GMS , the world’s leading cash buyer of ships said that “the sub-continent recycling markets seem to be traversing an undecided phase, where steel plate price volatility has been the key driving force behind the recent shakiness in the markets. This week, while Indian plate prices made some incredible gains as the week ended, both Pakistan and Bangladesh have reported declines of their own, whilst the Turkish market at the far end, wound up the week with a small improvement of their own.
We continue to see wet tonnage being proposed into the various markets, but no market sales have reportedly been confirmed yet, on the back of wavering levels from the market leaders (i.e. Bangladesh and Pakistan), where Owners are still trying to conclude units at last week’s levels. As such, it has been a quieter overall week in the industry”, GMS concluded.Nikos Roussanoglou, Hellenic Shipping News Worldwide