Slowdown in construction-industrial sectors continues
The slowdown in the construction and industrial sectors along with tight liquidity has resulted in traders and mills refraining from stocking materials, which further reduces demand, says a report by Wirana Shipping Corp.
With only a few fresh tonnages being circulated, the expected deluge of vessels for recycling has proved to be a mirage for over 14 months now.
Imported scrap prices were reduced by US$2/MT for the week ended 27 Jan 2024 where as prices of plate, rebars and other products were just about maintained, according to the report.
Sentiments of ship recyclers were weak as low demand in local steel market continued during the week.
Meanwhile, ship owners across dry, tanker and container segments continue to enjoy good demand and good charter rates.
“There has been a growing interest in second hand assets across all these segments,” said the report.
The expected flow of fresh tonnages for recycling from container segment thus stands postponed for at least a couple of months. Units in the offshore segment are also seeing an increase in demand and rates.
Gas carriers are presently seeing softer charter markets.
Overall, supply of fresh tonnages for recycling will continue to be slower though this counters low steel demand in the recycling destinations of Indian sub-continent. Fiinews.com
