Bangladesh recycling prices offer temporary opportunity

Wirana Shipping says limited vessel availability is driving recycling prices higher in Bangladesh despite weak domestic steel demand

Shipowners considering recycling older vessels could benefit from a narrow window of elevated prices in Bangladesh, where strong competition among recyclers is pushing offers higher despite continued weakness in the domestic steel market, according to Wirana Shipping.

The ship recycling cash buyer said limited vessel availability has driven prices beyond levels justified by underlying steel market conditions. However, the company warned that the current strength may prove short-lived, creating a potential opportunity for owners already considering vessel disposals.

“What we are seeing in Bangladesh is an unusual situation where recycling prices are rising despite weak demand for steel,” said Rakesh Khetan, chief executive of Wirana Shipping.

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