Recycling markets are ambling towards the end of the year without any real impetus, ability, aggression, or even an apparent willingness to engage in discussions to buy, so volatile has the situation been over the last two quarters.

Prices have of course come off by about $200/LDT in the sub-continent markets since the stunning peaks witnessed over $700/LDT just earlier this year – for reference, on a standard Capesize Bulker, that is over $4 million lost on the residual value alone.

Bangladesh still remains largely absent on the buying front with a majority of Buyers unable to get central bank financing to open fresh Letters of Credit. There is also talk of the shortage of U.S. Dollars in the country easing once the they can agree to an IMF loan, but we are unlikely to see any clarity on this until early next year (at best). As such, Chattogram seems like it would be unavailable for the remainder of this year.

After the collapse of the currency and the government, Pakistan has yet to fully find their feet again and most End Buyers are extremely tentative and reticent in their offerings, leaving the market mostly a nonevent.

This really leaves only India as a viable sub-continent destination, which itself has endured turbulent times as the currency has once again depreciated into the high Rs. 81 against the U.S. Dollar, while local steel prices gained ground after last week’s volatile plummet, especially after the recent reduction in export duties on steel products.

Turkey on the far end remains lost, with levels of its own having plummeted about $250/MT and fundamentals still hampering any sort of recovery, amidst a pinching shortage of any tonnage.

It is therefore likely to be a bleak and muted end to the year, with some desperately needed stability on currencies, finance limits and steel plate prices, in order to bring nervous end buyers back to the table.

Sentiments have softened across sub-continent markets once again this week, as buyers appear increasingly reluctant to commit on fresh tonnage while fundamentals remain so shaky – especially as the markets have witnessed across the last couple of weeks, where currencies and steel plate prices took turns in tumbling.

The Pakistani Rupee has breached historical lows and despite the odd flash of appreciation, has given Gadani Buyers extreme discomfort over the course of a torturous year of monumental declines.

Bangladesh, likewise, has suffered a currency calamity of its own, coupled with declining steel plate prices and increased limits on establishing fresh L/Cs due to a dire shortage of U.S. Dollars in the country, most Chattogram buyers are holding back or simply unable / unwilling to offer at all on any of the freshly proposed units.

India has lost about $80/LDT on steel prices over the last several weeks and despite gaining a marginal $5/Ton this week, remains under pressure as the lowest placed of all sub-continent markets once again. The Indian Rupee has also crossed the psychologically worrying Rs. 80 mark, leaving Alang buyers as worriedly cautious as their competitors.

Finally, the Turkish market remains depressed and unchanged for yet another week, as there are no units available to this market and at these current levels, most Owners / Cash Buyers wouldn’t commit their units to Aliaga Buyers anyways.

The supply of tonnage in the sub-continent had started to marginally improve but remains relatively strained as all freight sectors continue to perform, leaving demo markets starved of vessels once again. Prices therefore remain stranded below $600/LDT for another week with little chance of crossing that psychological barrier any time soon. The tendency indeed seems to suggest that levels will cool off again (perhaps down to the low $550s/LDT) in worrying signs for the recycling markets once again.