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GMS Market Commentary on Shipbreaking in Week 32 - SUB CONT STRUGGLES!

Steel News - Published on Tue, 13 Aug 2019

Subcontinent markets continue to remain depressed over these summer & monsoon months and with Eid holidays now upon us, there remains little hope of a return to more bullish numbers anytime soon. As it stands today, all markets are comfortably trading well below the USD 400/LDT mark and in the case of India and Pakistan, end Buyers are even trying their luck in the low USD 300s/LDT on certain types of vessels (unsurprisingly, to no avail thus far). A few weeks of stability will certainly be required, just to bring end Buyers back to the bidding tables, as confidence has been rocked to such an extent that there are few sensible offers emanating from India and Bangladesh, whilst Pakistan remains virtually inert after over a year on the sidelines, with no meaningful purchases to speak for.

In India, the bottom has truly come off steel plate prices as levels continued to decline over the course of this week as well, depreciating a whopping USD 70/Ton since early July. Adding to India’s woes has been the Indian Rupee, which too (briefly) breached INR 71 against the US Dollar this week.

There is still some hope that post Eid, the Bangladeshi market could return to previous highs well above USD 400/LDT once some of the inventory on local yards starts to clear out and with competing markets still in the doldrums, Cash Buyers with large LDT expensive units in their inventory are certainly waiting on this with baited breath.

Finally, Turkey’s state of stasis continues with marginal movements reported on steel plate prices as the Lira continues to hop around the TRY 5.60 mark against the U.S. Dollar.

The only positive across the various recycling locations is that despite being only restricted to importing Chinese flagged / government controlled tonnage after last year’s ruling, Chinese fundamentals have overall made positive moves over the recent past, to the extent that Chinese recycling yards are now competitive with the subcontinent markets as local offers are floating in the mid USD 300s/LDT as well.

For week 32 of 2019, GMS demo rankings / pricing for the week are as below.
Demo RankLocationSentimentDry BulkTankersContainers
1BangladeshDecliningUSD 370/LTUSD 380/LTUSD 390/LT
2PakistanDecliningUSD 360/LTUSD 370/ LTUSD 380/LT
3IndiaDecliningUSD 350/LTUSD 360/LTUSD 370/LT
4TurkeySteadyUSD 260/MTUSD 260/MTUSD 270/MT
 

Source :

Posted By : Ratan Singh on Tue, 13 Aug 2019
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