Shipbreakers in Pakistan have remained active over the last week, amid material shortages and restocking needs from domestic buyers. The sale of a 4,074.10 LDT tanker “QUEEN EMATHA”, came to light last week, which was concluded at around $615/LDT Delivered.
Buyers have been cautious over the recent downtrend in Indian and Bangladeshi markets as weaker steel prices particularly in India and Bangladeshi markets resistance to absorb higher prices have kept participants in those markets only slightly interested, moreover, the drop in imported scrap offers along with the weakening rupee-dollar parity has given buyers room to actively negotiate as deteriorating fundamentals elsewhere could possibly allow for a rising activity for local breakers in the near term.
In its latest weekly report, commenting over the South Asian recycling markets, shipbroker Clarkson Platou Hellas said that “as the tanker charter rates continue to struggle, several Owners seem to be making a quick decision to catch the recycling market whilst it remains hot as we have seen several larger Tanker units being circulated for sale during the week”, adding, “Bangladeshi recyclers appear to be in the prime position to acquire any available unit, as their current indications remain higher than their counterparts elsewhere in the subcontinent.
The rates from Pakistan are still firm, however still fall short of those on offer from Bangladesh, whereas the Indian market this week saw a fall by some USD 25/ldt from recent weeks following a significant drop in finished steel products in the last 14 days.
The Bangladesh plate prices continue to provide justification for the recent high offers on the table from the Buyers and there does not seem to be any concern for any correction, however there is now most definitely some caution that has crept in from the Indian market”.