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Pakistan Leading Demolition Market Price-Wise; shipyards in Gujarat likely to be hit

Ship owners looking to scrap their older vessels, are more likely to find a good deal in the Pakistani scrap yard market. In its latest weekly report by a leading shipbroker, the report said that “it has been a week emphasizing how this market is ever changing and volatile, ensuring it always difficult to know a vessels true market value.

Pakistan still remains the most eager destination for vessels

According to the shipbroker, “Pakistan still remains the most eager destination for vessels, and the strongest in terms of price levels, of all three Sub-Continent markets, however, some question marks have been raised concerning recent ‘high priced’ acquisitions which is reportedly leading to a ‘standoff’ between the cash buyers with tonnage in hand and the recyclers

Meanwhile, the recent improvement in offered prices has been a bullish factor that has already increased activity in the Indian Sub-Continent. Bangladesh, which was leading the market during the first half of the year, has seen its market share reduced due to improved fundamentals in other destinations. However, it remains a robust option and we expect activity in the country to retain at fair levels.

Strong return of Pakistan not just a temporary affair

 The unexpected strong return of Pakistan seems now to not be just a temporary affair. Activity from local breakers there remains robust and this is expected to continue throughout most of the final quarter of the year”, the shipbroker noted.

Continent regions, particularly India, regarding the continuing rise of Covid-19 cases and the handling of the virus and importantly, how they intend to deal with the upcoming Winter..

 With little supply of vessels on the horizon however, prices have a chance of recovering from the slight decline seen this week and hovering around the mid USD 300’s as many Cash Buyers have very little in hand and this is contributing to their frustration which could inevitably lead to some panic buying from some”, Clarkson Platou Hellas concluded.

Divergent pattern emerge between the dry bulk and tanker sectors in the ship recycling market another ship broking firm in its latest report said

Another ship broking firm in its latest report said they notice a divergent pattern emerge between the dry bulk and tanker sectors in the ship recycling market. In the case of the former, the improved sentiment and healthier freight earnings have curbed interest amongst owners of vintage dry bulk tonnage. However despite this, this past week we noted a significant number of dry bulk units being scrapped. In terms of the latter, the uninspiring performance of freight rates has led owners of vintage tanker units to negative PnL accounts, pushing them to take up the retirement option for some of the older units. 

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