GMS Market Commentary on Shipbreaking in Week48 - Final Flurry
Following a lackluster few quarters for the Bangladeshi market, demand has come surging back and prices in a cartel-less Chattogram shot up last week as local offers are no longer going through (or are restricted by) a committee of powerful local individuals, who had set up the cartel to begin with. As such, Bangladeshi End Buyers are now free to offer (as they wish) on an increasing supply of vessels, as the industry witnesses prices easily approach / sail past the USD 400/LDT mark threshold on select units. Moving forward, it is abundantly clear that both India and a resurgent Pakistan will have to revise their respective price ideas upwards as well, especially if they are to compete with, what could well be, a rampant Bangladesh during the last month of the year / early into 2021. Indian Buyers has certainly enjoyed several weeks of increasingly bullish sentiment & pricing and have kept themselves satisfied with a greater supply of HKC green vessels & specialist units of late, as Pakistan and Bangladesh compete on the larger LDT units on offer.
Finally, the Turkish market has made some serious positive strides this week (as far as local steel plate prices are concerned) and even though the Lira has weakened a little, local offerings have made a noteworthy improvement.
Meanwhile, Covid cases are on the rise across the subcontinent and indeed, around the globe, in what could prove to be the major challenge facing shipping markets and ‘as is’ deliveries in the coming weeks / month(s), as the industry approaches the end of the year.
With demolition prices now starting to creep up towards second hand prices, expect to see far more recycling deals completed towards the end of this year and moving into 2021, unless chartering rates improve significantly to offset such deals.