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Indian recyclers buoyed by bullish sentiment

Another Sinokor-controlled container ship has been sold for recycling in India, the fifth unit this year, for $612 per light displacement ton (ldt). The sale, described as an above market deal, included 100 tonnes of bunkers on board and could mark a significant uplift in prices.

Indian buyers have led the market in recent days, according to the latest weekly market report from GMS, the world’s largest cash buyer of end-of-life ships. Other sales include another MSC deal, with the 3,952 ldt MSC Maria fetching $547 for Hong Kong Convention yards only, and a Chinese panamax bulk carrier, Ya Tai 1, 10,399 ldt, getting $475 on the basis of Guangzhou delivery.

Pakistani buyers are back in the market following a spell in which financial issues and access to letters of credit blocked a number of deals. There are still liquidity issues facing Gadani buyers, GMS said, as letters of credit are still taking time to finalise but the situation appears to be easing.

Bangladeshi breakers remain on the sidelines, hampered by heavy monsoon rains and weak demand for steel.

Meanwhile developments in India and Pakistan appear to have stimulated recyclers in Turkey. Buyers in Aliaga are now coming forward looking for tonnage, GMS noted, having been out of the market for some time. More activity in Turkey is likely in the weeks ahead, GMS said. 

Price indications from GMS show India leading the market and firming. Typical prices show containers at $580, tankers at $560, and bulk carriers at $540. Prices in Pakistan are around $20 less, with a further $40 discount in Bangladesh. Turkish prices are improving and are estimated by GMS at $320, $310, and $300 for the three ship types respectively.