The war between Russia and Ukraine is severely damaged Ship Recycling Industry
Tans Shipping and Trading
Shipping Agent,Recycling Ship Supplier,Ship Chandler,Logistics Service,Marine Spares Supplier,Trading House,
As local currencies weakened against the US dollar, prices for ship demolition on the Indian subcontinent fell.
Despite the shortage of container and bulk carriers sold for scrap due to the high rates of transportation of these parts, the ship demolition?was hampered by weak demand for steel. According to the latest report by the Greek ship broker's Intermodal on May 25, the poor economic situation on the Indian subcontinent has damaged the hunger of ship recyclers for new tonnage.
Intermodal said: "A cocktail of strong currency depreciation combined with declining steel demand and prices and general uncertainty due to the ongoing war in Ukraine is unlikely, but will affect the supply of demolition markets. Indian buyers are following a more conservative approach due to steel volatility." prices because Pakistan faces many difficulties in maintaining a competitive role amid harsh economic realities.
Intermodal added that Bangladesh's recycling yards are still looking for tonnage, despite lower prices, due to low ship stocks.
In the early years of covid, the price of recycling ships dropped below?325$/LDT, which gradually increased.By the end of 2021 price had reached 600$/LDT and
In March 2022 the price of recycling ships reached around 700$/LDT in Bangladesh , but the effects of the Ukraine war price began to fall.
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Dubai-based Global Marketing Systems (GMS), the world's largest ship recycling cash buyer, estimates on week 21 of 2022 that scrap prices have fallen by nearly $ 10 / ldt than last two week.GMS said prices in India averaged $ 640 / ldt for container vessels, $ 630 / ldt for tankers and $ 620 / ldt for bulk carriers.Whether Bangladesh average price for Container vessels are $ 630 /LDT,Tanker $ 620 /LDT and $610 /LDT for the Bulk Carrier and Pakistan average prices for the Container,Tanker and Bulk carriers are?$ 620,$ 610 and $600/LDT on week 21.
The GMS noted that as the Russo-Ukrainian War continued, steel prices fell, reinforced by the weakening local currency. GMS said:?
"The ongoing sub-continent collapse in prices fully materialized this week, with all sectors talking down the market and refusing to offer anew on any fresh tonnage whilst they wait for markets to stabilize".
The sharp fall in prices over the past three months suggests that scrap ship prices may continue to fall due to the volatility of the dollar and the ongoing global economic downturn.
Written by Tanvir Akhter,?https://www.dhirubhai.net/in/tanvirakhter1
CEO Tans Shipping and Trading. e-mail :?[email protected]
Owner & Founder at TheSteelStation.com The Global Ship Recycling Online Platform
2 年The prices in India had fallen due to Indian Government’s levy of export duties on Iron Ore and its products 2-3 weeks ago. I think, this is one major reason and secondly the prices went quite high and it’s price correction as well. I personally see Demoships prices below USD500 per LDT in India anytime before 31.07.2022. Like Bangladesh, India is not much dependent on Rolling Materials out of ship recycling. As we have many main & secondary steel producers.
Guideship Consulting Services
2 年The ship recycling market remains in limbo, as both ship owners and ship breakers are holding back and gauging the market sentiments