The global ship recycling market is moving into a more difficult quarter, with rising costs, rising steel prices, possible slowdown in local steel demand, energy shortages and exchange risks. Even within the
The global ship recycling market is moving into a more difficult quarter, with rising costs, rising steel prices, possible slowdown in local steel demand, energy shortages and exchange risks. Even within the Indian sub-continent these parameters can have differing impacts. As of today, Bangladesh and Pakistan hold firmer ground in terms of prices offered for recycling candidates, according to vessel cash buyer Wirana Shipping’s latest market report.
Wirana’s industry report points to a market that is becoming harder to read and harder to time. Steel and scrap indicators are improving across key destinations, but that strength is not flowing evenly into offers to recycling candidates. For shipowners, that means the gap between headline market sentiment and actual executable prices may widen but thanks to slower supply of recycling candidates that ship owners end up getting higher prices than market indications because there will always be some buyers who may decide to speculate to offer higher than current prices.
In India, recyclers are still offering the lowest price levels in the subcontinent even as local steel plate prices, local scrap prices and imported scrap prices have all moved higher. At the same time, energy shortages affecting steel mills have slowed local
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