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GMS Market Commentary on Shipbreaking in Week 48

Steel News - Published on Tue, 03 Dec 2019

Image Source: economist.com
Going into the final furlong of the year, virtually all markets seem to be positioned positively and activity has started to ramp up, with Ship Owners keen to exploit some of these better offerings on show, before costs on as is vessels start to significantly increase with the new Sulphur fuel regulations that will come into effect from January l51, 2020. There is therefore a frantic scramble by Cash Buyers, to try and get their recently acquired high-priced 'as is' vessels delivered within December 2019, and many Owners on delivered deals are starting to run tight on time, given that the cancelling date on most deals is tabled approximately four weeks after the date of fixture.

On the local markets front, Bangladesh has been the most hungry and aggressive of the recycling markets of late, but these spurts of activity tend to be followed by a period of complete apathy and dissipating numbers - with Cash Buyers diverting vessels elsewhere in order to stay in the green.

While India has also started to compete in the mid-to-high USD 300s/LDT on any available and well positioned vessels, Pakistan surprisingly isn't too far behind and as it stands, all markets will have to remain on point, in order to secure their share of tonnage in the final month of the year.

Lastly, the Turkish market continues more of the same performance from previous weeks, with the firmer fundamentals that have been unchanged over the last couple of weeks, and the unrelenting shortage of tonnage that has been putting the squeeze on Turkish Recyclers.

Overall, steel plate prices have gained some encouraging ground, especially in India of late, whilst the currencies finally appear to be comparatively stable after a turbulent year. With demand and capacity also seeming relatively healthy, particularly on the smaller-to-mid range sized units it seems set to be a busy close to 2019 in all locations.

For week 48 of 2019, GMS demo rankings / pricing for the week are as below.
Demo RankLocationSentimentDry BulkTankersContainers
1BangladeshImprovingUSD 365/LTUSD 375/LTUSD 385/LT
2IndiaImprovingUSD 360/LTUSD 370/LTUSD 380/LT
3PakistanImprovingUSD 355/LTUSD 365/LTUSD 375/LT
4TurkeySteadyUSD 230/MTUSD 240/MTUSD 240/MT
 

Source :

Posted By : Rabi Wangkhem on Tue, 03 Dec 2019
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