Following the collapse of a local cartel which had been controlling price levels, the country’s recycling yards have moved to make up lost time, with several acquisitions of very large ore carriers and a price hike of at least $20per ldt.
“Bangladesh will be the market to watch as the year comes to a close,” declared GMS, the world’s largest cash buyer of end-of-life ships, in a weekly bulletin. Demand could turn “rampant”, the company said, following a spell in which Bangladeshi yards had not been able to compete effectively because of the now-defunct cartel’s price constraints.
As a result of the bull market in Bangladesh, recycling yards in both India and Pakistan will have to raise their price ideas, GMS suggested. Indian buyers have busied themselves in recent weeks with Hong Kong Convention green vessels and specialist units, while Pakistan has focused, together with Bangladesh, on larger vessels.
In Turkey, the only recycling region outside the subcontinent, prices have also increased sharply. Following a $25 per tonne hike in local steel prices, scrap also jumped by about $20 per ldt for all types of units. This was positive news for owners seeking to conclude recycling deals in Turkey, GMS noted.
Indicative prices show Bangladesh leading the way. Levels currently prevailing are around $400 for containers, $390 for tankers, and $380 for bulk carriers, according to GMS. Prices in Pakistan and India are about $10 and $20 less respectively for each category of vessel. Meanwhile, prices prevailing in Turkey start at $240 for containers, with the same differentials applying for tankers and bulkers.
