Shipowners urged to act as Bangladesh recycling prices surge, warns Wirana
Shipowners considering recycling older vessels have a narrow window to secure higher prices in Bangladesh, following an unexpected surge in offers despite continued weakness in the country’s domestic steel market, says Wirana Shipping. The oldest global vessel cash buyer has warned that the current price levels may prove short-lived, with limited vessel availability driving competition ...
Wirana Shipping warns shipowners to act quickly as recycling prices surge in Bangladesh. The oldest global vessel cash buyer has noted that current pricing may be temporary due to limited vessel availability and fierce competition among recyclers, pushing offers beyond sustainable levels based on the steel market. A dry cargo vessel in Bangladesh was sold for approximately eight percent more than the previous week's price.
The surge occurs despite weak domestic steel demand, with local mills hesitant to purchase and stockpile materials. Wirana believes similarly high prices may only be attainable for another three to four recycling candidates, presenting a valuable opportunity for shipowners considering vessel disposals. CEO Rakesh Khetan stated that recyclers are highly interested in acquiring vessels but there are not enough candidates.
The competition is creating opportunities for shipowners to achieve higher prices, but these levels are not supported by the underlying steel market and may not be sustainable indefinitely. Bangladesh's recycling market also faced disruption from festival holidays, with trading occurring on just two days during the reporting week.
Local steel plates, scrap, and imported shredded scrap prices remained relatively unchanged. The global shipping market restricts recycling candidate availability, with strong charter earnings encouraging owners to keep older vessels trading. Khetan advises shipowners to assess commercial realities carefully, as waiting for prices to rise further could result in missing a temporary opportunity.
For owners already deciding to recycle, the coming days could offer particularly attractive conditions, but timing will be crucial.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
