Markets - Recycling - Bangladesh still leads the way

Oct 11 2019


Green shoots of recovery have been evident in the sub-continent markets over the past couple of weeks.

This was particularly true in Bangladesh, where a number of (premium) sales have taken place that breached the $400 per tonne mark.

This gave encouragement to shipowners, cash buyers (still with expensive inventories) and end buyers, who have mainly remained on the sidelines, GMS said in its weekly report.

However, there were very few fresh candidates available for sale, as freight markets firmed on across all sectors, leaving any available scrap tonnage (especially non-green) to head for Chittagong.

Overall, India remained the lowest and most unfavourable destination, as end buyers lacked any sort of aggression or interest to purchase, as they have presented low/opportunistic offers for those vessels said to be heading in that direction.

It seems unlikely that Indian buyers will get their hands on fresh units any time soon, with only eight vessels beached during September (including small ldt tugs and supply vessels) reportedly, the lowest number in almost 10 years, GMS said.

Pakistani interests also stayed in their shell, with minimal interest and risible rates (reflective of India), as buyers preferred to ‘wait and watch’ market developments, following a halt to Iranian scrap imports, which should see optimism flood back to this market.

What they are ‘waiting and watching’ for is a mystery, as they have not secured any serious tonnage for well over a year, GMS said.

Therefore, with demand and pricing finally starting to get back on its feet in Bangladesh and a dwindling supply of vessels (despite 2020 being just around the corner), it is hoped that competing markets in India and Pakistan may start responding to this long overdue recovery, GMS concluded.

 



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