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GMS Market Commentary on Shipbreaking in Week 16 - DEALS DONE!

Steel News - Published on Tue, 23 Apr 2019

Image Source: Imgur
As we near the cut off date of the Bangladeshi budget on June 5th and the upcoming monsoon season across the subcontinent markets, deals keep being concluded – particulary in the beleaguered Capesize bulker and container sectors. A red hot Chattogram market has been (and continues) securing a majority of the market tonnage, at levels in the mid-to-high USD 400s/LDT, whilst the competing Indian and Pakistani markets struggle some USD 20 – USD 30/LDT behind. There are growing expectations that new taxes / duties might be introduced in the Bangladeshi budget, which is why end Buyers are nervous about acquiring vessels post-June 5th and are primarily looking for prompt deliveries at this time.

India too has taken in a steady flow of HKC SoC green units along with offshore vessels this year and this trend is certainly set to continue, going into the second-half of 2019.

Pakistan still remains stranded some ways behind both Bangladesh and India and has really only been taking small LDT vessels this year (fearful of their exposure on some of the larger units on offer). However, prices in Pakistan have at least been inching up of late, but this is still not enough for them to be competitive (even with India at present). As such, given the rate at which things are progressing in Gadani, it will take some more time for local Buyers to start acquiringtheir share of the market tonnage once again.

Finally, the Turkish market seems to have hit a“freeze” of sorts, with currency, fundamentals and (negative) sentiments all stagnating over the last couple of weeks.

For week 16 of 2019, GMS demo rankings / pricing for the week are as below.
Demo RankLocationSentimentDry Bulk USD/LDTContainers USD/LDTTankers USD/LDT
1BangladeshSteadyUSD 445/LTUSD 465 / LTUSD 455 / LT
2IndiaSteadyUSD 430/LTUSD 450 / LTUSD 440 / LT
3PakistanImprovingUSD 420/LTUSD 440 / LTUSD 430 / LT
4TurkeyWeakUSD 270 / MTUSD 270 / MTUSD 280 / MT
 

Source :

Posted By : Sanju Moirangthem on Tue, 23 Apr 2019
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