Markets - Demolition numbers increase in falling market

Apr 13 2018

There seemed to be little respite for the Indian sub-continent recyclers after a frustrating start to April.

This was due to the Pakistan tanker ban lingering on, a Bangladesh market seemingly in free fall and an Indian market that has struggled to keep up with its neighbours, GMS said in its weekly report.


Despite Gadani sources saying that the Pakistani ban will be lifted any day now, this now seems unlikely, as this has been the case since February.


Bangladeshi prices have plummeted on the back of a crash in the local steel plate prices and following the arrival of a large amount of tonnage at Chittagong’s waterfront, demand started to drastically subside last week, GMS said.


Even though supply has cooled somewhat - over 20 VLCCs have been sold this year thus far and there still remained a large number still unsold and in cash buyers hands, which are currently undergoing the stringent hot work cleaning required for India and Bangladesh.


It is expected to take some time before the market absorbs this tonnage and regain some aggression to buy before a degree of stability or confidence returns, GMS concluded.


However, there was no shortage of wet tonnage reported sold for recycling recently.


These included the 1996-built Suezmax ‘Shanghai’ sold to Bangladesh on private terms. Also heading for Bangladesh was the 1996-built Aframax ‘Success Pioneer XXXV’ sold for a reported $435 per ldt.


The 1977-built Aframax ‘Ecomaster’ was said to have been taken by Indian breakers for $300 per ldt on the basis of ‘as is’ Piraeus. India was also the destination of the 1994-built ‘Stolt Mountain’ for an undisclosed price.


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