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Week 50 - Ship Recycling Report - Best Oasis

10th December to 17th December 2021

GLOBAL SHIP
RECYCLING MARKETS

Highlights of the Week

The ship recycling market looks to finish the year quietly with barely any activity being witnessed as the lack of tonnage being offered combined with a paucity of buying interest at the current price levels has resulted in very few deals getting finalized this week. The subcontinent market has seen a further softening of about USD 5/LDT in offer prices as the domestic demand remains dull and the end buyers are looking for stability in prices before securing tonnage. Small and mid-sized tonnage between 10-20k LDT are being preferred whereas larger tonnage is hardly getting interest from buyers due to volatile market conditions.

Oil market is feeling the weight of bearish sentiments as surging cases of the Omicron variant and increasing international travel restrictions have raised fears on the future demand of oil.

Iron ore has defied forecasts for a fall into the end of the year as positive signs of further stimulus measures from China and future demand prospects kept the prices above USD 110/MT.

The rapid spread of Omicron variant, even though causing mild symptoms, is now weighing heavily on the global supply chain with extended quarantine requirements and crew change difficulties. Lack of personnel due to infections, port congestion due to closures, lack of ship capacity and containers, and shortages in production are altogether adding additional burden to the marine transportation sector.

INDIA

   Tanker:  

575

 USD 

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   container:   

595

 USD 

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   BULKER:   

560

 USD 

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LOW

MODERATE

HIGH

N/A = NOT AVAILABLE

Market remains muted

The volatility in steel prices has induced a state of vigilance among the end buyers who are reluctant to secure tonnage at the prevailing levels for the time being. They are looking for a correction in price and boost in demand for steel from the domestic market before making any move.

Major mills are reducing offers for overseas market as no active booking inquiries are coming at the current prices.

Domestic prices of HRC and CRC reported a sharp decline for the fifth consecutive week due to stagnating demand and stalled purchases in the domestic market.

BANGLADESH

   Tanker:  

615

 USD 

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   container:   

635

 USD 

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   BULKER:   

605

 USD 

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LOW

MODERATE

HIGH

N/A = NOT AVAILABLE

Market remains silent due to sluggish demand

There is no significant activity in the market as yard owners are apprehensive towards buying at the prevailing price levels. There are decent number of inquiries for small and mid-sized tonnage as they can be recycled within short span of time whereas there is very limited demand

for larger tonnage as they take much longer period for getting recycled.

Among the major three subcontinent markets, Bangladesh is yet again leading the price charts.

The mills are shying away from placing bulk orders as the demand for steel scrap remained low due to limited finished steel activity.

PAKISTAN

   Tanker:  

605

 USD 

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   container:   

620

 USD 

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   BULKER:   

595

 USD 

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LOW

MODERATE

HIGH

N/A = NOT AVAILABLE

PKR hangs on hope from IMF

The demand for tonnage remains stable however the ship owners are expecting higher prices which the buyers are not able to offer in the present scenario. This mismatch in price expectations has led to an oddly quiet market since past few weeks.

In recent months, the value of Pakistani rupee has got eroded due to multiple factors pertaining to debt repayments by the Pakistan government and inflationary pressures. A potential release of funds from IMF is expected to give the rupee some respite and pave way for a broader recovery for the economy and the currency.

Pakistan's central bank on Tuesday announced its decision to lift the benchmark interest rate by 100 basis points to 9.75 per cent to counter rising inflation and a large current account deficit.

TURKEY

   Tanker:  

330

 USD 

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   container:   

340

 USD 

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   BULKER:   

320

 USD 

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LOW

MODERATE

HIGH

N/A = NOT AVAILABLE

Lira plunges to historic lows

One cruise ship of about 5,000 LWT has arrived in Aliaga this week.

The domestic as well as imported scrap prices have further softened by USD 5/MT this week.

The Turkish lira blew past another record low after the central bank cut interest rates for a fourth straight month, a move that risks jeopardizing currency stability and stoking inflation already running at the fastest pace in three years. It is currently being traded at TL 16.64/USD.

Energy and Raw material prices have increased to a great extent with weakening of Lira as the raw materials are bought in USD and the final products are sold in the domestic currency.