Demo prices peak

Demand for ageing tonnage that can be sold for recycling remains high but many believe scrap prices are starting to level off.

In a reported published Monday morning GMS said prices in India have slipped by as much as $20.00 per ldt over the past week.

The firm, which claims to be the world’s largest cash buyer of scrap tonnage, suggested that the decline, in part, can be attributed to seasonal variables.

It noted that the demolition market tends to slowdown in the weeks leading up to the monsoon season in Southeast Asia and said there’s a strong chance "the peaks for this year have quite likely been reached”.

"The onset of the rainy season should [in addition to budget concerns in Pakistan and Bangladesh] see levels further cooling off with the summer months as much of the seasonal labour heads home,” the firm added.

GMS said tankers sold for recycling in India, Bangladesh, Pakistan, Turkey and China are commanding approximately $500, $475, $475, $345 and $325 per ldt on average, respectively, in today’s demolition market.

The firm told clients that other types of tonnage, like containerships and bulkers, are fetching roughly $475, $445, $445, $335 and $310 per ldt on average, respectively, when sold for scrap in India, Bangladesh, Pakistan, Turkey and China.