After a challenging summer where ship recycling prices in Indian sub-continent markets plummeted by over USD 100 per Light Displacement Ton (LDT), there’s good news entering the final quarter of the year. Almost all markets have experienced a significant upswing.
India has particularly benefited from this resurgence, making impressive container purchases, some even approaching the USD 600/LDT mark once more, according to cash buyer GMS. As China took a break, Indian local steel plate prices were the only ones to trade, gaining slightly. All the while, the Indian Rupee remained relatively stable against the US Dollar. Demand from buyers in Alang, India, has been high, thanks to a successful G20 summit and announcements of various infrastructure projects.
It’s no surprise that most ships are heading to Alang, which remains the market leader with the top payers and players. It has been the most reliable destination for transactions and lines of credit among all sub-continent markets, as noted by GMS.
Pakistan has re-emerged as a player in the market, with end buyers securing credit approvals to purchase several bulkers, mostly Panamax sized. After successful beaching, Gadani, Pakistan, experienced a slight dip due to resumed bank restrictions. However, with credit approvals starting to flow again, we can expect more sales in Pakistan before the year ends.
Bangladesh, on the other hand, faced disappointments as prices dropped uncontrollably during the summer and monsoon months. The Chattogram market is yet to fully recover. Credit approvals are struggling due to lower steel plate prices, forcing the BSBRA to halt the sale of inventory from local yards to prevent underselling at loss-making levels.
In summary, the supply of tonnage has mainly consisted of container ships over the past month. However, vintage handy and Panamax bulkers are steadily entering the market, with capes expected to join soon. The ship recycling market is on the rebound, with India and Pakistan leading the way in this positive resurgence.