Demolition Rates to Fall
Scrap ship buyers continue to be selective in their purchases amid fears that rates would slide as scrap yard capacity filled up.
In its weekly market report, US-based cash buyer GMS said the market was “groaning and creaking under the weight of available tonnage, almost doomed to the inevitable collapse that may well be lurking just around the corner”.
So far, prices in the Indian subcontinent have held at around $500 per ldt for wet tonnage and around $30 less for dry vessels.
However, the forthcoming budget in India on March 16 could prompt a more cautious approach from buyers in Alang over the next fortnight.
“Despite a settled local currency and stable domestic steel market in India, no reasonable price increases are evident due to the large supply of tonnage to the area,” said Clarkson Research Services.