More caution was evident last week, according to the weekly report from GMS, the world’s largest cash buyer of ships destined for recycling.
Imminent budgets in Bangladesh and Pakistan could also prove a factor in “some of the overzealous numbers seen recently”, GMS said.
Bangladesh still leads in the price league, with typical prices for container ships at $560 per light displacement ton (ldt), with tankers around ten dollars lower and a further discount of ten dollars for bulk carriers.
Prices in Pakistan were typically around ten dollars lower across the board, GMS said, while Indian yards were lagging about $40/ldt off the price leaders in Bangladesh.
However, GMS noted that demand remains firm and a reduction in recycling candidates could mean that the market remains steady. It might even strengthen further in the run-up to the rainy season.
Crew management remains a challenge, however, as Covid-related restrictions prevent repatriation on the sub-continent and ‘as is’ takeovers in many locations, particularly the Far East, are prevented by closed borders and other restrictions.
Meanwhile, in Turkey, the only other significant recycling location apart from the sub-continent, the weakening lira could lead to lower prices in the weeks ahead, GMS said. So far, though, Turkish prices are holding steady – typically around $300/ldt for containerships, with $10 and $20 less for tankers and bulkers respectively.
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