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GMS Market Commentary on Shipbreaking in Week 39 - Peaking Out

Steel News - Published on Wed, 23 Sep 2020

Image Source: Shipbreaking
Following the catastrophic falls of around USD 150/LDT during the second quarter of the year and with all subcontinent markets now securing tonnage at increasing numbers of late, the 2020 subcontinent recovery seems nearly complete. There are some concerns over whether prices will keep going up and there are even rumors that the Bangladesh Ship Breakers Association may try to form another cartel next week, in order to put a cap on prices, which a majority of local Recyclers feel are getting over-inflated once again. Indeed, there is the feeling that Pakistan has reached its peak, whilst India has endured some shaky steel prices once again, briefly stalling some of the progress made by this market in recent weeks. Therefore, there are some doubts from veteran players as to whether the industry will witness USD 400/LDT or close levels on standard, non specialist tonnage any time soon.

Finally, the Turkish market continues to coast for yet another week, with levels steady, plate prices on even keel, and the occasional arrival of another unit for EUSRR recycling.

Meanwhile, the world has been witnessing a second wave of Covid infections, particularly across parts of Europe where there are now increasing fears of a second lockdown. This comes as at a time when India continues to struggle with record daily cases nearing 100,000 infections, with few signs that this virus is going away any time soon.

With more tonnage starting to be seen for recycling, particularly larger LDT VLOCs of late, it is set to be a busv end to the year in all sub-continent locations.

For week 38 of 2020, GMS demo rankings / pricing for the week are as below.
Demo RankLocationSentimentDry BalkTankersContainers
1PakistanSteady340/LDT360/LDT370/LDT
2BangladeshSteady330/LDT350/LDT360/LDT
3IndiaSteady320/LDT340/LDT350/LDT
4TurkeySteady200/LDT210/LDT220/LDT
 

Source :

Posted By : Yogender Pancholi on Wed, 23 Sep 2020
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