GMS Market Commentary on Ship Breaking in Week 09
World's leading cash buyer of ships for recycling GMS said that “Steel prices in Asian recycling markets, save for India, have shot back up again last week, as
World's leading cash buyer of ships for recycling GMS said that “Steel prices in Asian recycling markets, save for India, have shot back up again last week, as this roller coaster year continues. This time, following a period on the sidelines at the start of this year, it is Pakistan surging to the forefront of the pricing charts once again and regaining control of recycling industry’s attention. Demand has been steadily firming in Gadani since the 2020 mid year binge that saw them secure a majority of the market tonnage and following the boon on import duties and taxes mentioned last week, the ship recycling sector in Pakistan has really taken off last week.”
GMS said “Bangladeshi Buyers are trying their best to keep up and have managed to secure at least one VLOC that was already in Cash Buyer hands this week.”
GMS added “However, the show stopping sales for the week certainly took place into Pakistan. It will be interesting to see if this most recent surge in Pakistan can be sustained for much of the year, or as with Bangladesh in mid-January, prices could come rolling down as steadily as they gained ground. At least Gadani buyers have some fierce competition from their Bangladeshi counterparts, who have seen steel prices claw much of the ground lost back and are hot on the heels of any market tonnage, particularly those geographically positioned in the Far East.”
GMS also said “India remains the lowest placed of all the subcontinent recycling markets yet again and it seems doubtful they will be able to secure much tonnage if the current trend persists, especially if there is a shortage of HKC green vessels and specialist, rich in non ferrous, units for them at present.”
On the far end, the Turkish market finally evened out last week with local steel prices and steel imports reporting no major change for the week, resulting in vessel prices being unchanged. Even the Lira has weakened again, approaching the TRY 7.5 mark against the US Dollar, leaving this market in a cautious state for the time being.