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 among recyclers and pushing offers beyond levels that can be sustained by underlying steel market conditions.

According to Wirana’s latest weekly market report, a dry cargo vessel was sold for recycling in Bangladesh at approximately eight per cent above the previous week’s price levels. The increase comes despite sluggish domestic steel demand, with local mills remaining cautious about purchasing and stockpiling materials. Wirana believes similarly high prices may only be achievable for another three or four recycling candidates, creating a potentially valuable opportunity for shipowners already contemplating vessel disposals.

Rakesh Khetan, CEO of Wirana Shipping, said: “What we are seeing in Bangladesh is an unusual situation where recycling prices are rising despite weak demand for steel. Recyclers are extremely keen to acquire vessels, but there are simply not enough candidates entering the market.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →