The ship demolition market appears to be in disarray, with prices collapsing. In its latest weekly report, shipbroker Clarkson Platou Hellas commented that “the recycling market has taken a disastrous turn for the worse this week on the back of a distinct lack of faith in the industry in Bangladesh.
Price levels from the Bangladeshi domestic market collapsed this week as cheap imports of the domestic mills took stock of cheap finished products from China, contributing to a major correction for ship scrap.
The import of finished scrap is now considerably lower than importing ships for recycling and hence, demand locally for ship scrap has drifted away. As such, the Bangladesh Ship Breaking Association issued an ultimatum for yards to immediately put a halt to the selling of their inventories to the steel mills in an effort to eradicate the current negative sentiment/pricing.
Therefore, this market is to be considered closed for the time being as the local recyclers have stressed that they will not be offering for any tonnage for the time being”.