GMS Market Commentary on Ship Breaking in Week 18
World's leading cash buyer of ships for recycling GMS said that “Despite the escalating Covid-19 crisis unfolding across the sub-continent, markets still
World's leading cash buyer of ships for recycling GMS said that “Despite the escalating Covid-19 crisis unfolding across the sub-continent, markets still remain firm as we head into Eid holidays this week. India has been hardest hit by this second wave of Covid-19 (reportedly a new mutation) and the country is now recording over 400,000 new daily cases and over 4,000 deaths, which could be much higher due to a lower rate of testing than most countries in Europe and the US. Pakistan, Bangladesh and Turkey are also recording increasing cases and the traditional Eid holiday religious gatherings that signal the end of the holy month of Ramadan are being strictly discouraged due to the current exponential spread in both countries. Bangladesh has extended their nationwide lockdown for another week, whilst the worst hit states in India are putting their own measures in place, in the absence of a government mandated nationwide lockdown. Pakistan also tightened domestic restrictions last week and in Gadani, activities at ship recycling yards have been suspended for the time being, similar to the present situation in India where all yards have closed and oxygen supplies are being diverted to local hospitals, in order to assist with the dire situation that’s currently unfolding. Notwithstanding, sales continue to take place into all markets and customs activities for the boarding and beaching of ships is still ongoing. With steel plate prices rampant across the industry, it is unsurprising to see local demand and offers being maintained for the time being. On the Western end, the Turkish market has recorded a surprising jump this week, with levels firming by about USD 10/MT as steel plate prices firmed this week.”
Dry Bulk – USD 490-510 per LDT
Tankers - USD 500-520 per LDT
Containers - USD 510-530 per LDT
Another demo broker EBM reported that 1998 built handy bulk carrier Vika has recently fetched USD 550 per LDT in Pakistan and a chemical tanker with more stainless steel, Glory Ship management’s Falcon, even managed USD 750 per LDT.
Despite the prices on offer being above USD 500 per LDT, owners are not rushing to beach their ships just yet, amid hot freight rate conditions for many sectors.