World's leading cash buyer of ships for recycling GMS said that “Fears and concerns across the sub-continent recycling markets continue to grow as local currencies across all major ship-recycling destinations continue to worryingly depreciate by the day and some even tougher restrictions reportedly set in place on the opening of fresh Letters of Credit in Bangladesh this week, as the foreign currency crisis in the country deepens further. In fact, the currencies have been such a source of frustration for the ship recycling community that the US Dollar transactions are getting uncontrollably out of hand. The Pakistani Rupee has depreciated by a whopping 44% since the start of the year and shows few signs of stabilizing just yet. Bangladesh too has not escaped the forex collapse and remains in a perilous state. In fact, this week, the Bangladeshi government has applied to the IMF for a USD 4.5 Billion bailout, with the economic crisis continuing to eviscerate non-essential large dollar value international trade.” GMS added “Moreover, on the Bangladeshi LC front, any LC over USD 3 million now has to be approved by the Central State Bank, this is down from the USD 5 million limit imposed just last week and illustrates just how grave the situation is locally. Inflation in Bangladesh too is the highest it has been for a decade at about 7.5% whilst the Bangladesh Taka has depreciated by about 11.5% in the year to date in further troubling signs.” GMS also said “India, ironically, given its volatile steel plate prices, remains the strongest and most resilient economy, but it is hardly encouraging to see competing markets in such dire straits, with talks plaguing the region that a similar collapse as that seen recently in Sri Lanka could be a serious possibility for those under siege countries.” GMS said “Finally, in Turkey, the situation is mirroring the Pakistani market, with weakening steel plate prices and a currency that seems doggedly intent on breaching TRY 18 at some point.” GMS concluded “As such, ship recycling is taking a backseat to these far more prescient worries at the moment, with nearly no new sales at least troubling recyclers for the time being.” GMS Price Assessment - India/Bangladesh/Pakistan – Week 30Dry Bulk – USD 550-570 per LDTTankers - USD 560-580 per LDTContainers - USD 570-590 per LDT
World's leading cash buyer of ships for recycling GMS said that “Fears and concerns across the sub-continent recycling markets continue to grow as local currencies across all major ship-recycling destinations continue to worryingly depreciate by the day and some even tougher restrictions reportedly set in place on the opening of fresh Letters of Credit in Bangladesh this week, as the foreign currency crisis in the country deepens further. In fact, the currencies have been such a source of frustration for the ship recycling community that the US Dollar transactions are getting uncontrollably out of hand. The Pakistani Rupee has depreciated by a whopping 44% since the start of the year and shows few signs of stabilizing just yet. Bangladesh too has not escaped the forex collapse and remains in a perilous state. In fact, this week, the Bangladeshi government has applied to the IMF for a USD 4.5 Billion bailout, with the economic crisis continuing to eviscerate non-essential large dollar value international trade.” GMS added “Moreover, on the Bangladeshi LC front, any LC over USD 3 million now has to be approved by the Central State Bank, this is down from the USD 5 million limit imposed just last week and illustrates just how grave the situation is locally. Inflation in Bangladesh too is the highest it has been for a decade at about 7.5% whilst the Bangladesh Taka has depreciated by about 11.5% in the year to date in further troubling signs.” GMS also said “India, ironically, given its volatile steel plate prices, remains the strongest and most resilient economy, but it is hardly encouraging to see competing markets in such dire straits, with talks plaguing the region that a similar collapse as that seen recently in Sri Lanka could be a serious possibility for those under siege countries.” GMS said “Finally, in Turkey, the situation is mirroring the Pakistani market, with weakening steel plate prices and a currency that seems doggedly intent on breaching TRY 18 at some point.” GMS concluded “As such, ship recycling is taking a backseat to these far more prescient worries at the moment, with nearly no new sales at least troubling recyclers for the time being.” GMS Price Assessment - India/Bangladesh/Pakistan – Week 30Dry Bulk – USD 550-570 per LDTTankers - USD 560-580 per LDTContainers - USD 570-590 per LDT
