Recyclers hold back in advance of Lunar New Year

Photo: Leela Modernized ship recycling facility - Leela yard.png
Demolition yards are biding their time in advance of next week’s Lunar New Year celebrations in Asia.

The early weeks of 2022 have seen a decline in deals although prices remain relatively firm. Transaction volume is likely to pick up from mid-February onwards, experts predict.

Indian recyclers, however, have concluded several special-ship deals, snapping up high-quality units that include two stainless steel chemical tankers, a Russian fish factory and a Canadian barge with valuable resale machinery on board.

According to the latest report from GMS, the world’s largest cash buyer of end-of-life ships, Indian yards paid about $750 per light displacement ton (ldt) for the fish factory and the barge. However, the firm price does not reflect any increase in underlying prices for standard units.

GMS estimates that Bangladesh still heads the price rankings, typically paying a healthy $590 for bulk carriers, $600 for tankers, and $610 for containerships. Pakistani breakers come next, paying around ten dollars less in each sector.

Prices paid by Indian recyclers, meanwhile, are improving and have narrowed the gap with other subcontinent yards. Typical Indian prices are now about ten dollars below those prevailing in Pakistan.

Exchange rate jitters continue in Turkey and buyers in Aliaga remain cautious, GMS said. However, the firm noted that Turkish yards remain relatively full although they will soon be gearing up for later first-quarter deliveries. Typical prices prevailing in Aliaga are steady at $330 for bulkers, $340 for tankers, and $350 for containerships.


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