ACTIVITY is slow and slowing in the ship demoliton market in recent weeks, according to Clarkson Platou (Hellas) Ltd shipbrokers of Greece, reports Hellenic Shipping News Worldwide.
'The slow movement towards the Christmas holidays continues with very few new ships being circulated into the market. Some stability seems to have returned to the industry as the lack of tonnage in circulation seems to be the only reasoning why the markets are not falling further,' said the company's market report.
'Price levels from the Indian recyclers looks like they have now bottomed out following the recent constant declines, however the price levels from Alang are now too far below those on offer from their counterparts from Bangladesh and Pakistan which would mean there will be little tonnage arriving,' the note continued
In a separate note, Greek-based Allied Shipbroking said: 'We seem to be in the midst of a mixed period for the ship recycling market, given some contrasting signs being noted in the market as of late. In Bangladesh, there is a feeling that the market is under stress, but this seems rather disconnected at this point, with the fair number of units being concluded for demo in the region under relatively strong price levels at the same time for many of these.'
In Pakistan, activity is currently lagging well behind that noted by the Bangladeshi market, being greatly affected by the steep currency depreciation of Pakistani Rupee, said the Allied note.
'In India, the uninspiring trajectory of local steel plate prices has significantly derailed the competitive advantage of local buyers. Finally, in the Mediterranean, the Turkish demolition market is currently experiencing negative pressure, given both the softening in steel prices being noted as well as the continual devaluation of the Turkish Lira.'
Meanwhile, Maryland and Dubai-based GMS Inc, the world's leading cash buyer of ships said that 'sub-continent ship recycling markets including Turkey remained in a precarious position with the recent decline in steel plate prices mixed in with the crushing depreciation of currencies that has led to a serious dearth in the global demand for tonnage.
'As a result, there have still not been any noteworthy sales at these new lower levels to justify some of the alarming news emanating from sub-continent markets, and it does seem that much of what we are hearing is far more dramatic than current realities on the ground.
'Steel plate prices in India have collapsed by over US$ 60/light displacement ton in recent weeks. Yet, sales of stainless-steel units (in particular) continue at ever impressive numbers to Alang Recyclers. This is likely because the non-ferrous market is comparatively more specialised and is somewhat insulated from the wider steel markets,' said the GMS note.
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'The slow movement towards the Christmas holidays continues with very few new ships being circulated into the market. Some stability seems to have returned to the industry as the lack of tonnage in circulation seems to be the only reasoning why the markets are not falling further,' said the company's market report.
'Price levels from the Indian recyclers looks like they have now bottomed out following the recent constant declines, however the price levels from Alang are now too far below those on offer from their counterparts from Bangladesh and Pakistan which would mean there will be little tonnage arriving,' the note continued
In a separate note, Greek-based Allied Shipbroking said: 'We seem to be in the midst of a mixed period for the ship recycling market, given some contrasting signs being noted in the market as of late. In Bangladesh, there is a feeling that the market is under stress, but this seems rather disconnected at this point, with the fair number of units being concluded for demo in the region under relatively strong price levels at the same time for many of these.'
In Pakistan, activity is currently lagging well behind that noted by the Bangladeshi market, being greatly affected by the steep currency depreciation of Pakistani Rupee, said the Allied note.
'In India, the uninspiring trajectory of local steel plate prices has significantly derailed the competitive advantage of local buyers. Finally, in the Mediterranean, the Turkish demolition market is currently experiencing negative pressure, given both the softening in steel prices being noted as well as the continual devaluation of the Turkish Lira.'
Meanwhile, Maryland and Dubai-based GMS Inc, the world's leading cash buyer of ships said that 'sub-continent ship recycling markets including Turkey remained in a precarious position with the recent decline in steel plate prices mixed in with the crushing depreciation of currencies that has led to a serious dearth in the global demand for tonnage.
'As a result, there have still not been any noteworthy sales at these new lower levels to justify some of the alarming news emanating from sub-continent markets, and it does seem that much of what we are hearing is far more dramatic than current realities on the ground.
'Steel plate prices in India have collapsed by over US$ 60/light displacement ton in recent weeks. Yet, sales of stainless-steel units (in particular) continue at ever impressive numbers to Alang Recyclers. This is likely because the non-ferrous market is comparatively more specialised and is somewhat insulated from the wider steel markets,' said the GMS note.
SeaNews Turkey