The ship recycling market returnedApril 21, 2023
The ship recycling market has returned to a “gloomy” state over the course of the past week. In its latest weekly report, shipbroker Clarkson Platou Hellas commented that “this week clearly sums up the difficulties associated with the ship recycling industry and shows how each seven-day period can differ. Contradicting recent reports, Bangladesh has found old problems returning with the restrictions surrounding the foreign exchange and opening of Letters of Credit resurfacing. There are reports of several vessels, recently arrived to the anchorage at Chattogram, now idle waiting for the L/C’s to open. Market sentiment has also affected the recyclers mentality as a declining trend is being promoted from the waterfront with many now providing indications lower compared to recent weeks. With Ramadan coming to an end, the hope is that a resurgence of interest and improved price levels will arrive from the recyclers from Bangladesh in a couple of weeks’ time, after their EID holidays. Elsewhere, Indian remains the more stable market of the Sub. Continent destinations and the lack of tonnage supply should ensure price levels maintain their firm stance”, the shipbroker concluded.