Ship recycling prices are skyrocketing and are approaching $ 500 / LTD for the first time (per tonne of pure metal), setting a maximum since 2014. A busy start to the year has seen prices jump above $450 per ldt with many owners now actively rethinking recycling plans to take advantage of the strong prices on offer.
“Now it seems a question of when not if we break through the $500 / ldt in the coming weeks,” brokers Thurlestone noted in a report to clients this week.
Clarksons Research suggests several factors have driven this price hike: spare capacity at refineries is creating new demand for ships, supported by demand for steel from local factories. “This is being driven by rallying global steel markets, which some industry stakeholders believe could help support the recycling industry for some time,” says Splash247. Current scrap price levels will likely become attractive for owners as they increase relative to secondhand rates.