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GMS Week 1 – NEW YEAR, NEW CHEER!

After a slightly sluggish festive period (in terms of sentiment and pricing) and as the industry head into the New Year, there was brewing optimism for a return to form in the subcontinent ship recycling markets.

Bangladeshi elections have finally concluded (on the 30th of December) and as expected, it was a resounding victory for the ruling party with no change to the regime reported. This in turn (is hoped) will quell some of the ongoing political unrest and uncertainty that have pervaded the country of late.

Pakistan – starved of tonnage – may also come back into the picture as the currency seems to have finally settled and high-rise building projects resume this year, leading to an increased demand for steel products. Having missed out on many of their favored container units of late, India too is likely to get back to the buying as local recyclers shift their focus towards and remain keen to import many of the green and offshore units on offer.

China of course has closed as a viable destination for international tonnage from the start of this year and only 1 – 2 of the open yards have the necessary licenses and the ability to import Chinese flagged vessels, albeit at rock bottom prices that remain frustrated in the low USD 100s/LDT (even emerging South East Asian yards are paying more at present). The Turkish market remains lost as local fundamentals further displayed volatility this week and local Buyers refrain from any aggressive moves whilst local levels continue to dither.

For week 1 of 2019, GMS demo rankings / pricing for the week are as below.

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Source: GMS Weekly

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