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GMS Week 20 – PARADOX IN CRISIS

This week, despite the rapidly escalating Covid-19 crisis across much of Asia, steel plate prices continue their upward trajectory once again for the second running week.

Indeed, ship recycling yards in Alang and Gadani remain closed for the time being and as such, there remain lingering concerns that these recent spikes in steel may simply be artificially induced, due to a dearth of supply and with product unable to shift from local yards at the same time.

There has been a steady stream of vessels sold pre-Eid holidays at improving levels, so it will be interesting to see whether this trend persists even after the holidays.

The end of Ramadan and the onset of the traditional Eid holidays has seen activity slow down a touch. Yet, demand remains strong going into the holiday season and fundamentals continue to firm. So, there is no reason why the present surge in ship recycling levels cannot be maintained as the summer / monsoon months approach.

A majority of the units sold so far this year have been in the beleaguered tanker and offshore sectors, with hardly any containers and very few dry bulk vessels being sold, especially as charter markets continue to impress.

On the Covid-91 front, India is struggling with over 400,000 cases and 4,000 deaths per day as this deadly second wave of the virus shows few signs of slowing and neighboring countries (Nepal in particular) share in the worsening crisis.

For week 20 of 2021, GMS demo rankings / pricing for the week are as below.

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Source: GMS

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