GMS Market Commentary on Ship Breaking in Week 16

World's leading cash buyer of ships for recycling GMS said that “As holidays descended across much of the sub-continent over the last week, activity and sales logically slowed as the recycling industry enjoyed a bit of a breather. Certainly, the recently ebullient Bangladeshi market has fallen out of contention over this past month, as domestic sentiments and pricing endured a sustained dip, despite having led the industry for much of this year. Instead, it is the rampant Pakistani and Indian markets that continue to lead the way and continue to pay the most impressive numbers close to and even above USD 700/LDT in some cases. Having missed out on much of the market tonnage to Bangladesh over the last few months, capacity at local yards remains healthy in both Alang and Gadani. As such, eager Recyclers are snapping up the paucity of available units at increasingly firm numbers.”

GMS said “Indeed, freight markets remain so impressively poised that a bit of a lull has descended over the industry of late (in terms of fresh market sales). Tanker rates across certain routes have also started to fly again and coupled with an admirably performing container and dry bulk sector, recycling markets are being deprived of most of the firm and workable age-appropriate tonnage.”

GMS added “Regrettably, on the ‘right’ of the globe, contradicting the aggression of the sub-continent markets, is Turkey that continues to struggle through a surprising week of declines, with steel plate prices and vessel offerings plummeting towards the low USD 400s/MT.”