Demolition rates falling

Oct 13 2017

Last week, the main recycling centres were once again offering lower levels.

As a result, overall activity started to slow, GMS reported.


During the past few weeks, steel plate prices suffered a near catastrophic fall in Turkey and to a lesser extent in China.


This in turn had a knock-on effect on the Indian sub-continent where ship prices have started to fall below the $400 per ldt mark. However, there was still demand for high spec vessels, albeit at lower levels.


The five-year recycling average for tankers has been around $380-$385 per ldt, so levels have been in good territory of late, GMS said.


Indian buyers have slipped behind their Bangladesh and Pakistan counterparts by around $20-$30 per ldt on certain vessels, but should the supply of good tonnage continue in the final quarter of this year, Alang might just have a chance of securing a share of the recycling candidates going forward.


Adding to this was the unwillingness of recyclers to match the bullish stance of cash buyers, which has transformed the market’s pricing landscape for the worse, GMS concluded.


Broking sources said that the 1984-built Panamax ‘Four Moon’ had been taken by Indian recyclers at an undisclosed price level, while the 1996-built MR ‘Kriti Amethyst’ was reported sold to Bangladesh interests for $425 per ldt.      

Previous: Markets - Owners in the driving seat

Next: Dualog wins 90-ship contract

Jun-Jul 2024

Tanker Operator Athens report: managing crewing, training challenges, views on SIRE 2.0