Ship recycling market update: Prices rise due to limited supply

Good news for ship owners, bad news for recyclers: Ship recycling prices are going up because there are fewer ships available to be broken down.

Here’s a breakdown by location:

India: Prices are slightly up due to a modest increase in demand for ships.

Bangladesh: Prices are stable, but there’s specific interest in tankers and container ships, with buyers being cautious before making purchases.

Pakistan: The market is quiet as a new government is being formed, and people are waiting to see how it will affect the industry.

Turkey: Prices are down slightly, both for imported and domestic ships. This is partly due to a rise in global debt levels.

Why the shortage? Ship owners are holding onto their ships because they can make good money right now due to high freight rates and strong second-hand ship values.

Ship recycling prices are going up because there aren’t enough ships available for recycling. Best Oasis, a major buyer of ships, reported that in the past week, different places have had different trends. In India, there’s a bit more demand for ships, which is good news for the market. But in Bangladesh, things are staying steady with no big changes. People there are particularly interested in tanker and container ships, but they’re waiting for financial confirmations before making any big moves.

Pakistan’s ship recycling business is pretty quiet right now, probably because everyone’s waiting to see how the new government will affect things. There’s not as much demand for recycled ship materials because industries like steel and construction aren’t as active.

Turkey, on the other hand, is seeing a drop in both import and domestic ship recycling prices. This might be because of a global increase in debt, which has hit a record high according to the Institute of International Finance. Most of this debt is coming from advanced economies like the United States, France, and Germany.

Another shipbroker, Clarkson Platou Hellas, noted that prices are going up a bit this week, probably because there aren’t as many ships available for recycling. In places like Alang, India, there are reports of only one or two new ships arriving for recycling, and none in Pakistan or Bangladesh. This shows that ship owners are taking advantage of good market conditions to sell their ships for recycling, especially since freight and charter rates are improving, and even older ships are getting higher prices because of global economic factors.