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GMS Market Commentary on Shipbreaking in Week 03 - Exuberance Maintains

Steel News - Published on Tue, 21 Jan 2020

Image Source: economist.com
It has been another positive week across the Indian subcontinent ship recycling locations, with further improvements on levels and demand, particularly on favored container vessels that have been making the rounds of late. Overall, India remains the market of the moment, with several sales from various Cash Buyers reportedly taking place at ever impressive numbers, despite no fresh market sales to report. However, Bangladeshi Recyclers are still determined to get their hands on the vessels that do remain, even if capable and available End Buyers are swiftly running out for the largest units on offer. Pakistan remains suspended in limbo, with no real change affecting the purchasing prowess of local Buyers. And finally, on the far side, the Turkish market remains in limbo, firmer overall, yet struggling to conclude any units amidst this seemingly unending dearth of tonnage.

Meanwhile, several green vessels continue to be introduced into the market for recycling and ensuring compliance of green recycling contracts has increasingly become a headline risk for Sellers in recent times, especially as several vessels that were sold for recycling as per the HKC guidelines into India, were eventually delivered into Bangladesh.

This is why it is important for socially & environmentally conscious Sellers to start ensuring they are committing their vessels for green / HKC recycling to reputable cash buying counterparties with a proven track record. Please see the accompanying Press Release in this regard.

For week 3 of 2020, GMS demo rankings / pricing for the week are as below.
Demo RankLocationSentimentDry BulkTankersContainers
1IndiaImprovingUSD 390/LTUSD 400/LTUSD 410/LT
2BangladeshImprovingUSD 380/LTUSD 390/LTUSD 400/LT
3PakistanImprovingUSD 370/LTUSD 380/LTUSD 390/LT
4TurkeySteadyUSD 230/MTUSD 240/MTUSD 240/MT
 

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Posted By : Rabi Wangkhem on Tue, 21 Jan 2020
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