Recyclers raise offers as owners hang on to old ships
Analysts report that the astonishing charter
markets prevailing over recent months have led to a shortage of recycling
candidates at repair yards on the Indian subcontinent and are forcing up scrap
prices. Indicative prices in Bangladesh and Pakistan are back in the $500s
following a prolonged spell in the $400s.
Yards in both Bangladesh and Pakistan are paying indicative prices of
$540-$530 for container ships, $530-$520 for tankers, and $510-$500 for bulk
carriers, according to figures released by GMS, the world’s largest buyer of
end-of-life ships. Indicative prices
in India, meanwhile, show that yards in Alang are typically paying $495 for
containers, $485 for tankers, and $465 for bulkers – still up on recent levels
but behind its neighbours.
However, GMS noted that Indian yards still lead in
the recycling of more complex ships including LNGs, reefers, passenger ships,
non-ferrous-rich vessels, and compliance-sensitive units. These ships, GMS
said, operate under different valuation procedures.
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