GMS Market Commentary on Ship Breaking in Week 02 - Swift Retreat
Ship BreakingInsider

GMS Market Commentary on Ship Breaking in Week 02 - Swift Retreat

World's leading cash buyer of ships for recycling GMS said that “Just as quickly as the markets came up over the last month

World's leading cash buyer of ships for recycling GMS said that “Just as quickly as the markets came up over the last month or so, they have declined just as fast and sharply over the last couple of weeks, particularly in Bangladesh, which has essentially lost all of the pricing ground that this market had gained recently, in shocking and unexpected reversals this week. It indeed appears as though steel mills in Bangladesh have been reacting to the higher prices observed over the first few weeks of the year, by lowering demand overall. As such, the aggressive buying of the previous weeks in Chattogram has almost entirely disappeared, with most End Buyers preferring to wait-and-watch market developments instead, especially before offering on new tonnage at some of these overly high numbers being asked on proposed units. This has subsequently left several Cash Buyers holding some of their high-priced inventory once again, and they will certainly be hoping for offers to bounce back to somewhere near previous levels, in order to simply break even on their units. Moreover, it is also evident that many End Buyers have booked themselves with decent tonnage and some of the post New Year demand has therefore started to subside.”

GMS added “On the Western end, even plate prices in Turkey have started to soften, with local steel levels and even steel imports retreating this week. As a result, local offerings too have retreated, with Local Recyclers offers on proposed tonnage, being about USD 5 per tonne lower. Meanwhile, dry cape charter rates have also started to expectantly cool off as we approach the Chinese New Year. We therefore anticipate a steady supply of tonnage for recycling for the remainder of this year, particularly for those vessels due for SS / DD and BWTS installations.”

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