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GMS Market Commentary on Shipbreaking in Week 21 - WAITING GAME

Steel News - Published on Tue, 26 May 2020

Image Source: Shipreaking
Despite imminent talks of markets reopening soon, prices have displayed a generally negative spiral in the subcontinent markets last week, with end Buyers lowballing on any available units, including those vessels that are currently stuck at anchorages of the various recycling destinations and thus playing into the Recycler's hands. Yet, as the week ended, there was still no official news on the markets reopening in any location, with only those vessels with domestic crews onboard being allowed to beach or those exceptional cases where special permissions were granted by the relevant authorities.

In Bangladesh, several vessels that have been waiting for nearly two months and one in India, are now considered to be in a distressed situation due to the amount of waiting time and have finally been granted special beaching approvals after appeals to the embassies of the relevant crew members and exceptional permissions from the customs & shipping authorities. Draft SOPs have been issued for review to permit the beaching of vessels with foreign crew on board and it is hoped that these may come into force once officially signed off or ratified within the next week or so. Of course the resumption of recycling activity in the various markets will be a slow, arduous and likely methodical affair. Much of the Alang workforce only about 20% currently remain stationed at local yards have returned to their home towns and the respective authorities across the sub-continent markets are still remaining rather cautious in resuming businesses too quickly, as Coronavirus cases continue to rise in each country.

Eid holidays across the Muslim world continue as the month of Ramadan is due to end shortly and it is expected to remain a mostly quiet week in Pakistan, Bangladesh and Turkey, as countries come under pressure to bring the Coronavirus outbreak under control and open up sensibly once again.

For week 21 of 2020, GMS demo rankings / pricing for the week are as below.
Demo RankLocationSentimentDry BulkTankersContainers
2BangladeshWeak280 / LDT300/LDT310/LDT

Source :

Posted By : Yogender Pancholi on Tue, 26 May 2020
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