An easing of steel plate prices has taken some of the froth off the top of the market, but experts believe that firm prices are likely to last at least until the year end.
According to the latest market report from GMS, the world’s largest cash buyer of end-of-life ships, China’s announcement that it has halted steel exports will mean no undercutting of local inventories and should therefore support subcontinent prices.
Unless there is some major unforeseen disaster or ‘black swan’ event, GMS said, there is little chance of a rapid decline in prices similar to those that occurred in 2008 (financial crisis) and 2015 (Chinese dumping of steel). The impact of Covid-19 seems to have been factored into prices as many observe the success of vaccine roll-outs and possible booster shots in the months ahead, the firm observed.
Recycling prices are easing, nonetheless. Bangladesh buyers still hold sway, with containerships typically yielding $610 per light displacement ton (ldt), and tankers and bulkers at $600 and $590 respectively.
Elsewhere on the subcontinent, Pakistan prices lag those in Bangladesh by about ten dollars across the board, with Indian facilities lower by a further $20. Typical Turkish prices for the three ship types are also easing and are currently around $290, $280 and $270.
One significant deal highlighted by GMS is the sale of the 28,820dwt, 1990-built LPG carrier, Standorf. The tanker, with a lightweight of 10,875 and 1,100 tonnes of bunkers on board, was sold at $700/ldt for delivery full subcontinent range in buyer’s option. Having recently discharged on the east coast of India, she is suspected to be a prime Bangladeshi candidate, GMS said.
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