GMS Market Commentary on Ship Breaking in Week 11
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GMS Market Commentary on Ship Breaking in Week 11

World's leading cash buyer of ships for recycling GMS said that “Markets have fired up once again last week, particularly in the impressive Bangladeshi

World's leading cash buyer of ships for recycling GMS said that “Markets have fired up once again last week, particularly in the impressive Bangladeshi market, which continues to outshoot its competitors (despite the best efforts of a resurgent Pakistan) and there are finally a couple of choice, large LDT units in the market to offer to hungry End Buyers. So far this year, the markets have already seen supply starved at times and this has led to some exuberant offerings from Cash Buyers and End Buyers alike, in order to secure some of the favoured vessels that have come on offer thus far. Local fundamentals too appear to be supporting such exuberance (for now) with steel plate prices having firmed up even further in Bangladesh this week. Even the Turkish market has reported no negative movements last week, with the Lira firming its way back towards the TRY 7.X mark and fundamentals relatively unchanged.”

GMS said “Overall, demand remains good in all markets as well with capacity decent on subcontinent plots. Hence, it can be expected that these levels should persist for the next month or so at the very least, as high as they seem in the grand scheme of pricing over the last few years. Moreover, freight rates in the dry and container sectors continue to firm and this is leading to a shortage in these types of vessels. As such, it is mostly offshore units and now (increasingly) tankers that are supplying the red-hot demolition markets.”

GMS added “These days, it is crucially important to reiterate the importance of delivering vessels gas free for hot works clean into all sub-continent markets due to the increased restrictions / regulations around permitting the import of wet units into the subcontinent destinations for recycling. The standards to allow entry into local scrap markets indeed is higher even than for vessels going into dry dock. All cargo and slop tanks must be totally cleaned of all cargo residues, slops and sludges, further than the man height cleaning that was previously acceptable.”

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