Intermodal Weekly Market Report, Tuesday 9th May 2017, Week 18

Market insight By John N. Cotzias, SnP Broker

Up until a few weeks ago demo deals were being concluded at just a fraction below $400/ldt. Last time we saw demo prices around that level was in May 2015. But over the past few weeks the scene has completely changed. There is an apparent lack of demolition candidates, while demo prices in the Indian subcontinent have lost over $30/ldt on average during the same period. Bangladesh and Pakistan were competing quite strongly offering a small premium over India’s Alang prices. However the recent heavy decline in local steel plate prices has forced most end buyers to reduce their offering price.

In view of the restocking ahead of the monsoon season in late May –June and the annual budgets in Pakistan and Bangladesh during same period, we remain to see if rumors of any new duties / taxes will come into effect for the respective domestic ship-recycling sectors, and how such developments will affect scrap buyers appetite.

We have to keep in mind that at the moment only Bangladesh and India can cut gas free and clean for hot works tanker vessels, as after the fatal accidents that took place in Pakistan earlier this year, there is still a total ban on the demolition of all wet units in the country.

Whole weekly report you can download here