GMS Market Commentary on Ship Breaking in Week 17

World's leading cash buyer of ships for recycling GMS said that “India finally leads the way on pricing this week, as all of markets i.e. Pakistani, Bangladeshi and even the Turkish markets work their way towards Eid holidays and the end of the Holy month of Ramadan. In fact, several markets are likely to be closed anywhere from a couple of days in the sub-continent with the Turkish market celebrating until Thursday. Overall, it has been a far softer week in terms of sentiment in Pakistan, whilst Bangladesh has remained largely absent from the buying for another week. The Pakistani Rupee suffered some minor depreciations by about 2% or so, once again giving Gadani Recyclers another excuse to try and talk down the domestic market and even walk away from some high-priced deals that have reportedly failed to perform. As such, it is a market worth avoiding at present for this very reason. Bangladesh has also suffered some currency depreciations of their own leaving them even further away from the rest, subsequently ending the week as the most distant sub-continent recycling destination.

GMS said “Indian steel prices suffered some noteworthy falls during the initial course of the week, before recovering by the time the week ended, as Alang too enters the holiday period. Yet, Indian Buyers have managed to maintain pole position and continue to secure much of the dwindling array of available vessels.”

GMS added “Finally, as Tanker, Container and even Bulker rates continue to impress as Monsoon lingers over the Indian sub-continent horizon, it is increasingly clear that the markets are going to see far fewer vessels for sale in the second quarter of the year.”