Ship recycling prices climb $ 600 per tonne
Pakistani buyers are still lagging behind but may have to rethink their strategy if they are to secure tonnage in the coming months, according to GMS, the world’s largest buyer of ships for cash.
Tug tanker markets could facilitate tight tonnage supply, but new regulations in Pakistan were introduced following the grounding of a floating storage unit that had not been properly cleaned. Owners are reminded to ensure that tankers are properly prepared and cleaned for hot work before they arrive at facilities on the subcontinent, GMS noted.
Indian yards are in a stronger position following a recovery in local steel sheet prices. Prices still lag behind other facilities on the subcontinent, but the gap is closing. Offshore vessels, passenger ships, reefer cargo ships and stainless steel tankers have found their way to Alang yards amid a surprising shortage of green Hong Kong Convention vessels, GMS said.
The latest developments in recycling come against a backdrop of strong demand for steel, strong forward projections and rising iron ore prices. Speaking at the Singapore Iron Ore Forum last week, as part of Singapore International Ferrous Week, Nicholas Snowdon of Goldman Sachs, head of base metals and bulk research, said the strength of the market did not was not likely to change anytime soon. Demand is high and suppliers have resisted the temptation to increase production, he said.
Iron ore prices are not expected to stay above $ 200 per tonne, but are expected to remain firm around $ 150 next year, analysts agreed. The benchmark iron ore future hit record highs in China this year with the most active contract on the Dalian commodities exchange, for delivery in September, reaching 1,241 yuan ($ 191.5) on Friday. latest.
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