Ship recycling offers defy softer steel in South Asia

Wirana expects current levels to hold as few vessels came to market.

Ship recycling offers in India, Pakistan, Bangladesh, and Turkey held firm, with the supply of recycling candidates expected to remain slow, according to Wirana Shipping Corporation’s latest market outlook.

Offers in India remained steady despite local steel plate and scrap prices falling $5 per metric tonne (MT) and $6 per MT, respectively, as few vessels came to market.

Meanwhile, offers in Pakistan were unchanged as weak steel demand and ample material kept recyclers cautious about buying.

Wirana Shipping said it expects offers to remain at current levels in both markets.

Steel plate rose $2 per MT in Bangladesh, whilst scrap fell $6 per MT amidst weak demand. Recyclers continued to seek scarce vessels, with offers expected to stay firm despite currency pressure.

Imported scrap rose $7 per MT in Turkey, but offers were unchanged as vessel supply was limited. Tug availability is complicating moves from the Black Sea to Aliaga.

“We expect the overall supply of recycling candidates to remain slow,” Wirana Shipping said.

It added that a wider return to Suez could leave the container market with excess vessels over the next six to seven months.

The EU process for listing two Indian recycling facilities remains unresolved following the ENVI committee’s objection.

Tanker rates fell across all sizes except for medium range vessels, whilst capesize and panamax markets remained firm. Secondhand demand remained “good”.

Container charter rates remained firm as some lines began returning to Suez.

Liquefied natural gas rates rose across all sizes, including steam turbine vessels, whilst liquefied petroleum gas rates also increased across all sizes.