Markets - Recycling - Changing scene

Oct 04 2019


Sub-continent markets finally appeared to be turning positive.

Nearly all locations posted some gains off the back of settling steel plate prices and stabilising/firming currencies, GMS said in its weekly report.

Demand was also picking up again with all port reports showing Indian sub-continent markets starved of tonnage/new arrivals.

As expected, following a huge intake of large ldt vessels during the first half of the year, Bangladesh has been on the sidelines over the summer/monsoon months.

However, there was no excuse for such a sluggish late summer performance from both India and Pakistan, where prices and demand were muted, GMS said.

Ater a few weeks of declining fundamentals, Turkey also seemed to be stabilising after both the Lira and local plate prices found their respective balances last week.

Meanwhile, with prices falling lower by the day in recent months, certain cash buyers who held on to their tonnage are now checking the markets with increased fervour, in the hopes of finally selling their units and diminishing their losses, or breaking even.

Moreover, as there remained a minimal supply of fresh vessels from the international markets as all freight sectors are bullish, cash buyers may just get lucky on their units.

The forthcoming IMO2020 sulfur cap is looming large. However, there has been a curiously marginal amount of scrapping in the lead up to this milestone year, as shipowners were perhaps confident that the improved freight rates will  cover the added costs of scrubbers and/or cleaner fuels.

Brokers reported that Bangladesh breakers had taken the 1996-built MR ‘Theresa Success’ and the ‘1994-built MR ‘Akrotiri’. However, no price idea was forthcoming.

 



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Jul-Aug 19

Greece, alarm fatigue, Fujairah explosions, scrubbers, tank cleaning