GMS Market Commentary on Ship Breaking in Week 33
Ship Breaking Daily Sabah

GMS Market Commentary on Ship Breaking in Week 33

World's leading cash buyer of ships for recycling GMS said that “A noticeable degree of concern remains evident in the sub-continent

World's leading cash buyer of ships for recycling GMS said that “A noticeable degree of concern remains evident in the sub-continent ship recycling markets, as both Bangladesh and especially India witnessed unexpected declines in steel plate prices over the week. Even the Turkish market recorded a cooling of its own, with sentiments there reportedly starting to simmer off. Bangladesh saw steel prices cool off and jump back up by about USD 20/LDT over the last couple of weeks and a healthy number of Chattogram Buyers have subsequently decided to wait-and-watch market developments before offering firm on any fresh units. Even in India, where the situation is worse and where plate prices have fallen even more than Bangladesh, Alang Buyers are also re-evaluating their offers and as such, we have seen several Cash Buyers reportedly rolling back and in some cases, even withdrawing their offers on certain India-only units, where levels escalated well beyond comfort levels.”

GMS said “Despite this, many in the industry are expecting the recycling markets to remain firm for the second half of the year, given that China has announced it will no longer be exporting steel, thereby no undercutting of local inventories and billet prices can be expected at the various recycling destinations.”

GMS added “Overall, most are not expecting any upcoming decline to be as bad as that of 2008 or even 2015, when prices tumbled at an alarming rate largely in response to black swan events i.e. the financial crisis of 2008 and the aggressive dumping of Chinese steel in 2015. Barring another major disaster and or black swan event, there seems to be a small chance of a similar decline this time, as much of the disruption caused by Covid-19 seems to have been factored in and many consider the worst to be over as the global vaccine and now booster shot roll out continues.”

GMS also said “Meanwhile, the Delta variant continues to cause concern across the globe, but as vaccination rates continue at pace and certain countries continue to gradually open UK, Israel, USA, etc, a certain level of optimism continues to linger in the global markets.”

GMS Pricing

India/Bangladesh/Pakistan – Week 33, INSTABILITY CONTINUES

Dry Bulk – USD 560-590 per LDT

Tankers - USD 570-600 per LDT

Containers - USD 580-610 per LDT

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