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GMS Week 40 –REVERSAL TERRITORY!

After a stunning surge in the third quarter of the year that saw much of the losses incurred due to the pandemic reversed, the markets appear increasingly set for an upcoming correction in the near future.

Pakistan is rapidly starting to fill up and news has filtered through about the formation of a Cartel in Bangladesh that is looking to peg prices at an acceptable, profit-making level for End Buyers – or at least the powerful Local Buyers who have formed the Cartel.

Prices are starting to settle back down into the mid USD 300s/LDT on most decent vessels once again and levels in India are in the neighborhood of USD 25 – USD 30/LDT lower than its sub-continent competitors – the expectation being that they may secure their share of generally better priced HKC green tonnage.

In Turkey, steel plate prices also softened further this week (albeit marginally), yet vessel prices were reportedly unaffected since the only tonnage that seems to be working of late is units intended for EUSRR based green recycling, whilst the remaining majority of non-EU approved yards remain famished for tonnage.

Covid-19 cases continue to afflict the sub-continent and India (in particular) has been recording upwards of 100,000 infections per day, as hospitals fill up and authorities struggle to bring the deadly disease under control.

The news that President Trump has contracted the virus may also see further volatility enter the markets, as a second wave sweeps across parts of Europe and the U.S., ahead of what is expected to be a difficult winter season.

Finally, vessel take overs at various ports across the globe are becoming increasingly challenging, with stringent quarantine and entry rules limiting all but a handful of locations for vessel deliveries.
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Source: GMS

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