Ships’ recycling has taken a turn in favor of ship owners, as scarce tonnage has forced yards to compete for tonnage, leading to higher prices. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “a new week but unfortunately this did not relate to a fresh deluge of tonnage for Buyers to ingrain themselves into and instead has meant that those vessels that have been circulated, have received positive competition resulting in each sale raising eyebrows to the benefit of Owners as price levels continue to remain firm and bubble just below the USD 400/per ldt mark in India and Pakistan. This is another situation to watch closely as the respective recycling destinations tussle for the market tonnage and increase their prices accordingly, often if Indian Buyers like a specific type of vessel they will pay whatever is needed to obtain it, but certainly indications from the Indian recyclers have narrowed towards the rates from Pakistan”.
GMS added that “there is also the uncertainty regarding the upcoming U.S. election (to be determined in November) and how long it may take to announce a winner with absentee voting, now likely to be required to register votes with Covid-19 still surging in the U.S. Supply into subcontinent markets for recycling has slowed over this last month or so, as charter markets – particularly in the container and dry bulk sectors – pick up again after a largely woeful first half of the year. At the far end, the Turkish market seems to have finally stabilized this week, with scrap steel imports firming up marginally and the Lira though weaker, has also been stable this week. In other news this week, GMS successfully concluded their fourth webinar in their Leadership series on the Hong Kong Convention and the role of Japan & Norway in making the first progressive steps in encouraging developments in the subcontinent and we would like to thank all those who tuned in once again”, GMS concluded.