Recycling rates likely to soon top $600 per ldt
Shipbreaking yards on the Indian subcontinent still offering prices in the high $500s.
Recycling rates at breaking yards on the Indian subcontinent have continued to rise and look set to top $600 per ldt, despite the arrival of summer and the monsoon season.
According to the latest report from GMS, the world’s largest cash buyer of end-of-life ships, prices have doubled over the last year.
“Not since the heady days of 2008 have we seen such consistently firm levels on scrap prices,” the firm noted.
“It will be interesting to see how much longer this trend persists, with many analysts predicting that this ongoing ‘super-cycle’ may be set to end at some point before the end of the year. [The market] could eventually turn tumultuous at that time, for shipowners and cash buyers alike.”
The company said Indian buyers still lag behind those in Pakistan and Bangladesh, but that could soon change as Bangladesh enters a hard lockdown, with offices closed and residents ordered to stay at home.
