Ship Recycling Market Picks Up Speed
he ship recycling market has increased its pace over the past week, with prices rising across the board. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “market levels continue to firm without any significant sales to report in lieu of the oncoming Lunar holidays in the Far East.
The lack of tonnage availability is the perfect storm to create aggressive buying prowess and current price indications seemed to have gained a USD 20-30 per ldt profit margin from last week. There are certainly not too many expectations of improved activity in the next couple of weeks as the holidays in the Far East take effect. Several reports during the week also suggest China wishes to lower its steel production/exports during this year, although many predict this could prove difficult. In the first half of 2021, Chinese steel mills have churned out nearly 12% more crude steel compared to the same period in 2020 however, should this slowdown materialise, we could expect continued firm price levels for ship recycling in the Indian sub-Continent”.