GMS Market Commentary on Ship Breaking in Week 24
World's leading cash buyer of ships for recycling GMS said that “All fiscal budgets in the Indian sub-continent markets have been announced in the past month or so, without any duties or taxes being levied on their respective domestic ship recycling sectors and this has left all areas positively positioned moving into the summer & monsoon months. Of late, a marginal slowdown in the flow of fresh tonnage has given the sub-continent markets a bit of a breather, to regain their appetite and momentum ahead of a renewed push, at ever increasing and impressive numbers. Levels well into the USD 500s/LDT seem here to stay across the sub-continent markets for the time-being and for the foreseeable future as well, especially as steel plate prices remain relatively firm across the board and demand remains strong for any available units, mostly in the tanker and offshore categories.
Finally, the Turkish market remains steady, with a marginal decline in imported steel reported this week. Yet, levels and demand, both hold firm.
GMS added “The Covid-19 situation continues to cause concern, particularly in India, although case numbers and fatality rates have finally been declining over consecutive weeks, where the government is doing its best to curb the spread. In other parts of the world, particularly the UK and the US, where they have accelerated their vaccine programs & are moving towards reopening in order to build herd immunity, other countries across the globe need to follow suit in order to try and get back to some form of normality before the end of the year.”
India/Bangladesh/Pakistan – Week 24, Up USD 20 WoW
Dry Bulk – USD 530-550 per LDT
Tankers - USD 540-560 per LDT
Containers - USD 550-570 per LDT