GMS Market Commentary on Ship Breaking in Week 20
Ship BreakingThe Economist

GMS Market Commentary on Ship Breaking in Week 20

World's leading cash buyer of ships for recycling GMS said that “Despite the prices on offer being above USD 500 per LDT, owners are not rushing to beach

World's leading cash buyer of ships for recycling GMS said that “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. With the conclusion of Eid holidays, SNP activity resumed in the sub-continent markets once again, with some continually strong numbers on show, despite declining of steel plate prices by about USD 9 per LDT in India last week. Some of the momentum leading up to Eid holidays has unsurprisingly stalled a little, and there is a lingering suspicion that the markets have perhaps peaked and a slight correction in levels could be anticipated in the near future. COVID19 continues to wreak havoc across the sub-continent markets, particularly in India, where ICU units are continually over-filled, with over 400,000 daily cases and over 4,000 daily deaths that have shocked the rest of the world.”

GMS said “Meanwhile, given the recent spike in cases in Pakistan and pursuant to the recent lockdown, ship recycling yards in Gadani are due to resume activity from next week, whilst the lockdown in Bangladesh has been extended for yet another week. Turkey too has resumed activity this week Post Ramadan as steel fundamentals continue to firm, helping sustain the stronger levels currently on show.”

GMS added that “Overall, amidst a flying dry bulk and container chartering market / second hand sector, tanker and offshore units remain the overwhelming supply for the most part. As the summer / monsoon months approach, it will be interesting to see if the present momentum can be sustained or if levels will start to cool off, as the traditionally slow Monsoon period around this time of year, gradually comes into view.”

India/Bangladesh/Pakistan – Week 20, up USD 10-30 WoW

Dry Bulk – USD 500-540 per LDT

Tankers - USD 510-550 per LDT

Containers - USD 520-560 per LDT

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