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GMS Market Commentary on Shipbreaking In Week 23 - INERTIA!

Steel News - Published on Tue, 11 Jun 2019

Image Source: SteelGuru
The stagnating inertia in the international ship recycling markets continued this week, with Pakistan, Bangladesh and Turkey entirely offline due to Eid holidays (winding down the Holy Month of Ramadan) and the traditionally quieter monsoon season gradually getting under way in the Indian sub-continent. There was a brief bounce in the Indian market following the election victory of the pro-business Mr Modi, but local steel prices have begun to cool off ever since and Alang Buyers appear notably reluctant to commit on new vessels as most of the market focus is now shifting to Alang, due to the overall intransigence from Pakistan and Bangladesh and the higher offers emanating from India.

The market in Bangladesh remains the quietest of all, with the upcoming budget on June 13th likely to determine the immediate direction on prices, which have already lost USD 20–30 LDT over the last few weeks. Most yards in Chattogram also remain stuffed with tonnage and demand is at the lowest it has been all year, with essentially no new enquiries emanating from local Buyers.

The expectation (as seems to be the case year-after-year) is that new duties / taxes are set to be announced in this budget and prices are likely to decline further thereafter. As such, Bangladeshi Buyers are no longer keen to import fresh tonnage before the date of the budget, given the likelihood of increasing duties within the next week.

Eid holidays have of course kept nearly all markets much quieter – perhaps good timing given that much of the shipping community has been gathering in Norway for NOR Shipping this week. Yet, a few interesting sales did manage to register to ever ready Cash Buyers.

For week 23 of 2019, GMS demo rankings / pricing for the week are as below.
Demo RankLocationSentimentDry BulkContainersTankers
1IndiaDecliningUSD 415/LTUSD 435/LTUSD 425/LT
2BangladeshDecliningUSD 410/LTUSD 430/LTUSD 420/LT
3PakistanDecliningUSD 400/LTUSD 420/LTUSD 410/LT
4TurkeySteadyUSD 260/MTUSD 260/MTUSD 270/MT

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Posted By : Ratan Singh on Tue, 11 Jun 2019
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