GMS Week 26 – DOWNWARD SPIRAL!
India continued its depressing downward spiral this week, with all market sales into Alang reportedly taking place below the USD 300/LDT mark, all while a resurgent Pakistani and Bangladeshi market managed to pick up the remains of mostly non-green tonnage currently making the rounds.
The fear in India is of an oversupply of HKC green tonnage, when in fact, many Ship Owners are choosing to withdraw / hold on to their units for the time being, rather than commit their vessels at the risible rates currently on show.
We have not faced such a lowly recycling industry since the dark days of 2015 / 2016, when this most recent ship recycling recession was in full swing and rates in the region of USD 250/LDT (and below) were commonplace, due to the collapse in steel prices on the back of Chinese exporters dumping a lot of cheap steel into the international markets.
Notwithstanding, ever since anti-dumping duties were introduced to counter this, scrap prices have since soared, but the recent Covid-19 and resulting economic downturn coupled with the ongoing oversupply of vessels for recycling has once again seen prices collapse.
If the supply of vessels continues at the current unsustainable rate, recycling prices may continue to fall further. Yet, given the fact that fundamentals have been fairly firm (of late) and some of the coronavirus restrictions set in place have seen conditions starting to improve across the sub-continent markets (especially in Bangladesh and Pakistan), most are hoping for the improvements to continue in the months ahead.
Lastly, in Turkey, steel plate prices have weakened marginally this week, resulting in local offerings on available tonnage to retreat in kind.
For week 26 of 2020, GMS demo rankings / pricing for the week are as below.