Scrap prices slide

Shipowners have been told to hold off concluding any recycling deals as demo prices collapse in the sub-continent. Steel plate prices have been dropping while local currencies have been in “meltdown” against the US dollar, according to a new report from cash buyer GMS.

Owners seeking offers on fresh units have been advised by GMS to steer clear of the markets for now, as there is likely to be some opportunistic offering that is not reflective of today’s market pricing. Owners keen to sell have been told to wait until the markets and prices have seen at least a couple of weeks of stability.

GMS predicted a far bleaker summer – the monsoon season – ahead as end buyers, cash buyers and owners all grapple with these new realities on prices, some $100 per ldt below their peak.

Another cash buyer, Best Oasis, said the ship recycling market is currently at a standstill thanks to the “drastic” difference in the price expectations of shipowners, cash buyers, and recyclers.

“Offers from the end buyers of all recycling destinations have taken a hit in past four weeks due to their depreciating currencies, falling steel demand and rising inflation,” Best Oasis stated in a weekly update.

Clarksons also noted in a weekly update published on Friday that there have been rumours of post-sale price renegotiations across the major recycling countries, adding to what the broker described as a “nervy atmosphere”.