Markets - Recycling rates keep rising

Dec 15 2017


The late year pre-Christmas strength witnessed in the sub-continent markets continued last week, GMS said in its weekly report.

Last week, it was the Greek owners in the recycling limelight once again, as Goldenport managed to achieve an incredible price for a containership (said to be $468 per ldt) that is drawing gradually closer to the $475 per ldt mark - the first time since the bullish days of early 2015 (and before the crash that saw the market lose nearly half of its value).

 

As such, it would not be surprising to see several more sales take place in a similar vein before this year ends (probably even higher), especially as owners were eagerly looking at opportunities to exploit the current market positivity, GMS said.

 

Conversely, the number of viable candidates remained largely at a trickle, rather than a deluge and it is this shortage that is allowing the markets to sustain some of the clearly impressive rates witnessed in recent weeks.

 

Local steel plate prices remained firm across the board and even though the currency in Pakistan suffered a surprising and worrying depreciation of about 5% last week, demand has continuously improved of late, even after the brief fourth-quarter blip in sentiment/pricing.

 

This currency concern in Pakistan is not expected to be a long term hurdle and is linked to a liquidity crisis, which should be alleviated in the coming week(s) once the government pumps more cash into the system, GMS concluded.

 

Meanwhile, the second phase of an IMO-implemented project to enhance safe and environmentally sound ship recycling in Bangladesh is due to begin in January, following a $1.1 mill funding agreement with Norway.

 

The two-year project will build on the first phase of the Safe and Environmentally Sound Ship Recycling in Bangladesh (SENSREC) project, which resulted in economic and environmental studies on ship recycling in the country, the development of training materials and capacity building plans and a preliminary design for infrastructure including facilities for treatment, storage and disposal of hazardous wastes generated from recycling operations, the IMO said.

 

SENSREC Phase II will assist Bangladesh to build the capacity to develop and implement a legal, policy and institutional roadmap towards accession to the Hong Kong Convention. Also, under the project, a variety of stakeholders will be trained to lay the foundation for an effective and sustainable training programme within the ship recycling sector in Bangladesh.

 

“We are very pleased to be moving forwards with phase II of the SENSREC project.. The key focus of this phase will be on training and governance, to ensure safe and sustainable ship recycling,” said Dr Stefan Micallef, IMO’s Marine Environment Division director, adding that the comprehensive training programme would be aimed at workers in ship recycling yards, supervisors and government officials.

 

The project is funded by Norway’s Ministry of Foreign Affairs, channelling finance through the Embassy of Norway to Bangladesh. The budget is NOK9 mill for the 24-month project, commencing in January, 2018.

 

Other international partners, include the secretariat of the BRS Conventions, the International Labour Organisation (ILO) and the UN Industrial Development Organisation (UNIDO) who will also be involved.

 

Brokers reported a few private tanker deals, including the sale of the 1993-built FSO ‘Star Bright’ - a converted VLCC - to undisclosed breakers for $391 per ldt.

 

Also reported sold on private terms were the 2003-built Aframax ‘Amba Bhavanee’ and the 1998-built Aframax ‘Alfa Britannia’.

 



Previous: Markets - Maybe next year!

Next: NAT launches IPO


Apr 2018

Denmark, tanker arbitration, ice class, oily water discharge, drone surveys