GMS Week 22 – NO SURPRISES!

As the Bangladeshi budget of June 1st starts to be digested in full, it has been an altogether quieter week in Chattogram as local banks and Recyclers evaluate the outcome to ensure no unexpected surprises emerge, before committing afresh on tonnage – and thus far, none seem to be reported.

As such, it should be a busier time for sales and activity from next week once business resumes, although we are now entering the traditionally quieter monsoon and summer months when much of the labor starts to return to their hometowns due to the persistent rains, rendering yards far too difficult for cutting/recycling activities.

Meanwhile, India has also seen some positivity return as the Indian Rupee gained some good ground to fall below the Rs. 83 level against the U.S. Dollar, where it had been recently trading.

The supply of tonnage also remains surprisingly scarce, so any vessels that do come to market are perhaps seeing levels above the reality on the ground, as Cash Buyers look to secure first and work end Buyers’ thereafter, hoping to create some competition and obtain firmer levels.

Pakistan remains completely out of the picture for yet another week, with political and economic uncertainty continuing to beset the country and little hope of ship recycling activity resuming any time soon.

Furthermore, despite a busy few tides gone by in Bangladesh and end Buyers starting to get around their L/C hurdles with the Central State Government bank, plot capacity remains healthy in both Bangladesh and India, so there is certainly potential to absorb more incoming tonnage.

Finally, Turkey sails through another week of opposing fundamentals, as President Erdogan cinches a narrow win and secure his position, with his primary aims reportedly being that of battling the rampant domestic inflation.

For week 22 of 2023, GMS demo rankings / pricing for the week are as below.

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Source: GMS,Inc. , https://www.gmsinc.net/gms_new/index.php/web