THE ship recycling market has had a positive week thanks to a renewed supply of older smaller ships, reports Hellenic Shipping News Worldwide.
Shipbroker Clarkson Platou Hellas said that 'this [last] week has seen a strong supply of smaller container units circulated into the market which could be the sign of things to come
'With about 10-15 smaller container vessels reportedly being discussed in the recycling market this week, 10 from one Far Eastern owner, this is the indicative sign that the container bubble has finally burst,' said the Clarkson Platou Hellas report.
'We hasten to add that we are not expecting a deluge of such tonnage, particularly the larger size, but it is encouraging for the recyclers to finally see the container units are one of their preferred types.
'Further good news is that the Indian recycling market has seen a further surge in price levels this week, on the back of an increase in the domestic steel market, with price levels having jumped northward by some US$30-40 per light displacement ton.
'Therefore, these container units that have come fresh into the market, if sold, should see some impressive numbers compared to what we have witnessed in recent weeks. Away from India, bleak news in these winter months continues from Bangladesh and Pakistan,' said the report.
According to Clarkson Platou Hellas, the financial restraints that have dominated the recyclers minds in these destinations for several months now continues. In Bangladesh, the local plate market fell by some 500-taka adding to the negative feel. In addition, reports emanated from the area that the L/C situation (lack of foreign exchange) is estimated to improve only by the end of January/February 2023 when the IMF loan would be approved - funding for humanitarian supplies will obviously be catered for first prior to the ship recycling/other sectors.
It is understood that a ship recycler will only be able to obtain maximum $300,000 to $500,000 per week which means that a letter of credit of say $10 million will take four months.
SeaNews Turkey
Shipbroker Clarkson Platou Hellas said that 'this [last] week has seen a strong supply of smaller container units circulated into the market which could be the sign of things to come
'With about 10-15 smaller container vessels reportedly being discussed in the recycling market this week, 10 from one Far Eastern owner, this is the indicative sign that the container bubble has finally burst,' said the Clarkson Platou Hellas report.
'We hasten to add that we are not expecting a deluge of such tonnage, particularly the larger size, but it is encouraging for the recyclers to finally see the container units are one of their preferred types.
'Further good news is that the Indian recycling market has seen a further surge in price levels this week, on the back of an increase in the domestic steel market, with price levels having jumped northward by some US$30-40 per light displacement ton.
'Therefore, these container units that have come fresh into the market, if sold, should see some impressive numbers compared to what we have witnessed in recent weeks. Away from India, bleak news in these winter months continues from Bangladesh and Pakistan,' said the report.
According to Clarkson Platou Hellas, the financial restraints that have dominated the recyclers minds in these destinations for several months now continues. In Bangladesh, the local plate market fell by some 500-taka adding to the negative feel. In addition, reports emanated from the area that the L/C situation (lack of foreign exchange) is estimated to improve only by the end of January/February 2023 when the IMF loan would be approved - funding for humanitarian supplies will obviously be catered for first prior to the ship recycling/other sectors.
It is understood that a ship recycler will only be able to obtain maximum $300,000 to $500,000 per week which means that a letter of credit of say $10 million will take four months.
SeaNews Turkey
