India’s shipbreaking market is likely to face a deluge of tonnage in the coming days, pressuring prices once markets reopen, according to GMS weekly. On Friday, price levels were at or below $300/ldt. Ship owners were unwilling to accept these levels and thus, several vessels subsequently withdrew. Activity at Alang still remains subdued with workers yet to return to yards.
Prices offered by Bangladesh buyers were below those offered in India. For the last two weeks, vessels have been receiving permissions to beach. But it would be a while before recycling returns to normal levels with the quarantine restrictions imposed. No trades were reported as buyers are awaiting a clarity in price direction once markets reopen.
Although markets are expected to reopen soon, prices have been on a negative spiral last week. Shipbreaking has turned into a buyers’ market, with some vessels stuck at anchorages.