20 February 2018

Recycling - Volatility reigns

Another flat week concluded in the recycling markets, due to a steady reluctance from recyclers to pay some of cash buyers asking prices.

There were also some reverberating volatile fundamentals (in tandem with the recently rocky international stock markets) started to influence a nervous sub-continent recycling market, GMS said in its weekly report.

Local steel plate prices suffered another set of worrying reversals in midweek (just as global stock markets started to plunge), only to find their feet again in the final few days of the week, subsequently bringing some needed relief to the anxious ship-recycling sector.

Several cash buyers were still hoping that the markets hold going into the traditionally quieter Chinese New Year holiday period, as there remain several expensive and unsold vessels in a variety of hands.

Meanwhile, the VLCC market continues to shed tonnage at pace as news of yet another unit being committed, surfaced last week. This has taken the total to almost 10 units sold/beached for the year already, GMS said.

In the light of accusations that the company was behind the sale of four reefers for recycling, led by NGO Shipbreaking Platform, GMS said that it categorically denied being the buyer of, or associated in anyway with the purchase of the vessels mentioned by NGO.

GMS said it condemned the circulation of such false and inaccurate information. This reckless and reprehensible action by the NGO Shipbreaking Platform is intended to advance its own agenda and to manipulate public opinion by deliberately circulating ‘Fake News’ disguised as fact.

“It is regrettable that the NGO Shipbreaking Platform continues to abuse the power of their ‘megaphone’ by wildly spreading misinformation and ignoring the need to present fair and accurate information to the public,” GMS said.

GMS also said it was proud to have developed a responsible ship recycling programme (RSRP) through which, it has supervised the recycling of more than 30 vessels a year and has also motivated the interest of recycling yards in both India and Bangladesh to upgrade their standards of recycling in line with the Hong Kong International Convention.

Brokers reported that the 1999-built VLCC ‘Plata Pioneer’ to India or Bangladesh breakers for about $440 per ldt in a gas free condition.

In addition, the 1992-built Aframax ‘Basilia’ was said to have been committed to Indian sub-continent recyclers for $458 per ldt also in a gas free condition.

Source: tanker operator. 16 February 2018

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