World's leading cash buyer of ships for recycling GMS said that “Following the recent drastic falls, which have seen almost USD 100/LDT wiped off prices, the ship recycling industry in the Indian sub-continent seems to be taking a bit of a pause, as End Buyers remain less than confident to offer any firm prices with certainty. Adding to the frustration is the minimal number of candidates currently available to work on, such is the bullish state of all freight sectors. Accordingly, we may see a prolonged summer & monsoon lull across all sub-continent recycling locations.”GMS said “On the West end, Turkey is far worse off with its plummeting steel plate prices (both import and local) and a currency that has shaken the local market to a standstill, with no new arrivals or even news of fresh deals as local offerings are firmly below the USD 300/MT mark.”GMS also said “As such, given the state of global currencies, which continue to depreciate alarmingly against the US Dollar, in addition to soaring inflation, it would not be surprising to see minimal or virtually NO deals concluded to End Buyers for the next few months. Indeed, even those vessels sold to Cash Buyers at recycling equivalent prices today are seeing previously unthinkable trading opportunities at fantastic levels and those older assets are now being passed through drydock, with firm chartering rates at present.”GMS added “This is, inevitably and expectedly, leading to pent up demand for recycling units as most plots are increasingly turning dormant and are in dire need to acquire vessels in order to fulfill LC limits with banks. Local banks are also becoming tougher on granting fresh LCs, particularly for larger LDT vessels, and this is leading to End Buyers having to put up larger securities in order to obtain the necessary financing for new units.GMS Price Assessment - India/Bangladesh/Pakistan – Week 24Dry Bulk – USD 590-610 per LDTTankers - USD 600-620 per LDTContainers - USD 610-630 per LDT
World's leading cash buyer of ships for recycling GMS said that “Following the recent drastic falls, which have seen almost USD 100/LDT wiped off prices, the ship recycling industry in the Indian sub-continent seems to be taking a bit of a pause, as End Buyers remain less than confident to offer any firm prices with certainty. Adding to the frustration is the minimal number of candidates currently available to work on, such is the bullish state of all freight sectors. Accordingly, we may see a prolonged summer & monsoon lull across all sub-continent recycling locations.”GMS said “On the West end, Turkey is far worse off with its plummeting steel plate prices (both import and local) and a currency that has shaken the local market to a standstill, with no new arrivals or even news of fresh deals as local offerings are firmly below the USD 300/MT mark.”GMS also said “As such, given the state of global currencies, which continue to depreciate alarmingly against the US Dollar, in addition to soaring inflation, it would not be surprising to see minimal or virtually NO deals concluded to End Buyers for the next few months. Indeed, even those vessels sold to Cash Buyers at recycling equivalent prices today are seeing previously unthinkable trading opportunities at fantastic levels and those older assets are now being passed through drydock, with firm chartering rates at present.”GMS added “This is, inevitably and expectedly, leading to pent up demand for recycling units as most plots are increasingly turning dormant and are in dire need to acquire vessels in order to fulfill LC limits with banks. Local banks are also becoming tougher on granting fresh LCs, particularly for larger LDT vessels, and this is leading to End Buyers having to put up larger securities in order to obtain the necessary financing for new units.GMS Price Assessment - India/Bangladesh/Pakistan – Week 24Dry Bulk – USD 590-610 per LDTTankers - USD 600-620 per LDTContainers - USD 610-630 per LDT
