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GMS Market Commentary on Shipbreaking in Week 44 - ON EDGE!

Steel News - Published on Tue, 14 Nov 2017

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While some of the recently damaging falls appear to have halted for now, the market remains on edge, with only a few hardy end Buyers coming forward to offer prices at anything near workable levels.

In Bangladesh and Pakistan, the fear is that further falls may well be on the horizon as currencies have remained volatile (especially in Bangladesh) and local steel plate prices have registered declines of nearly USD 50/LDT since their peak seen over the summer months.

India, the weakest of the sub-continent locations, ironically appears to be the most stable market at present. However, very few eligible candidates are destined for their shores given that a majority (if not all) of the large LDT wet units have been destined for Bangladesh and large LDT dry units are being negotiated with Pakistan being the intended final destination.

While the smaller LDT, geographically positioned vessels and green units have primarily been heading to Indian shores, circumstances have however conspired to leave Alang buyers bereft of any meaningful tonnage yet again this week.

Turkey has taken its fair share of green tonnage as well this year and the trend continued this week with further arrivals being reported. On the other side, given the ongoing closure of a majority of Chinese recycling yards, the couple of yards that are open are reportedly offering seemingly exploitative levels in the high USD 100s/LT, further ensuring the lack fixtures into this market.

Finally, there was more bad news in Pakistan as the seemingly jinxed FSU Aces (ex Federal I) caught fire yet again and this tragedy will certainly result in an increasingly extended period on the sidelines for Gadani recyclers and wet tonnage, after some recent hope that the market could reopen sometime this year.

For week 45 of 2017, GMS demo rankings / pricing for the week are as below:
Demo RankingCountryMarket SentimentGEN CARGO/BULKER PricesCONTAINER /TANKER Prices
1PakistanSteadyUSD 385/LTUSD 405/LT
2BangladeshSteadyUSD 375/LTUSD 395/LT
3IndiaSteadyUSD 370/LTUSD 390/LT
4TurkeyWeakUSD 255/MTUSD 265/MT
5ChinaWeakUSD 210/LTUSD 230/LT

GMS Weekly

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Posted By : Rabi Wangkhem on Tue, 14 Nov 2017
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