GMS Market Commentary on Ship Breaking in Week 08
World's leading cash buyer of ships for recycling GMS said that “As the decline in steel plate prices levels out for the time being, all of the sub-continent markets are in a far healthier position today than they were only a few weeks back. The halt was perhaps expected, given the resumption of buying from Chinese mills, now that the Chinese New Year holidays are finally over. Consequently, we have seen prices come up of late and almost all of the sub-continent markets are now trading in the mid USD 400s/LDT, having only recently been in the low USD 400s/LDT (and even below) for many of the units that were being discussed basis a February (Alang) delivery.”
Therefore, the sub-continent markets can positively head into March, poised and ready to acquire units at decent levels once again. Demand remains good across all sub-continent locations, but of course there is a distinct lack of supply with most freight sectors performing well of late.
At the far end, even the Turkish market is doing better as fundamentals have been improving and prices start to firm. Only a matter of time until yard space starts freeing up and levels jump even higher.