a A shortage of available tonnage continues to hamper demolition activities across the Southeast Asian region. In the latest weekly report, shipbuilder Clarkson Plateau Hellas said: “As Diwali celebrations are in full swing this week, industry observers are using this period to suspend tonnage distribution. This year saw the UK announce yet another prime minister (its third prime minister this year alone) and Rishi Snak became the first Asian leader of the House of Commons, notably It is hoped that he will bring some stability to the now much-needed domestic economy and that this will help support a very chaotic global picture of financial conditions. Many of the industry players have returned home after last week’s aforementioned Tradewinds ship recycling conference, initially a success as stakeholders came together to discuss and discuss the market after the covid pandemic. However, activity has not picked up since then as freight markets have held firm in all sectors and the rest of the year has been similarly quiet, the quietest on record. …Despite murmurs in the local market, there should still be demand from steel mills even with falling steel prices, which will make India and Bangladesh a firm pillar of the market. The former is the most stable of the three major recycling destinations. An empty menu of tonnages for buyers to choose from will lead to significant reductions in steel sheet prices for ships in the near future. not expected,” the shipbroker concluded.
In a separate note, Allied Shipbroking adds: Moreover, the market is likely to remain in turmoil for the coming period as the price idea gap widens further among final buyers, cash buyers and owners. In Bangladesh, more specifically across individual major demonstration destinations, the situation remains rather stagnant, with most local buyers seemingly unable to compete at a relatively ‘viable’ level. Current steel sheet prices and currency levels, combined with still restrictive L/C levels on the market, create inadequate conditions for a quick recovery at this time. In Pakistan, activity also appears to be relatively subdued, with limited scope for more sustainable trade flows to form through effective spread of scrap price levels. Finally, in India, things remained fairly quiet again in the middle of Diwali.
Meanwhile, GMS (www.gmsinc.net) added: Cash buyers engaging in meaningful negotiations. Fundamentals, a key driver of ongoing volatility, remain volatile everywhere as steel prices volatile/falling and currencies struggle to find a stable footing . As a result, a kind of his two-tier market has emerged. One is a market where cash buyers, brokers and owners expect the market to be at a certain level, and the other is where local recyclers intentionally set prices well below the asking price. It’s a market that seems to be. We are about 50 USD/LDT away at this point. Only in selected advantageous tonnages, such as Russian-made tankers or his LDT special forces of small size in good condition, will be hailed in acceptable numbers by the market, especially picky Bangladesh. Prices for Standard Handy, Panamax Bulk Carriers and Capes are mid $550/LDT (if any) as the number of end buyers able to establish valid L/Cs across the subcontinent continues to decline. Diwali in India brought a break to the market, but the sustained inertia evident in Pakistan and Bangladesh turned into a lingering malaise, giving cash buyers the confidence to offer any of the few available candidates for recycling. Is not … A much more bullish trading sector as a viable alternative,” he concluded GMS.
Nikos Roussanoglou, Hellenic Shipping News Worldwide