GMS Week 44 – SURGING AHEAD!
It has been another impressive week in the Indian sub-continent ship recycling markets as prices pushed on past USD 600/LDT (especially on certain decent spec vessels) and as the cobwebs from the September sub-continent lull seem to have been well and truly blown away at this time, prices seem likely to push on to their highest levels of the year thus far.
On the Western end, the Turkish market had a bit of a counter re-adjustment this week, as import steel dropped by about USD 10/MT, whilst demand still remains strong, especially for deliveries in Q1 of 2022.
It therefore looks increasingly set to be a frantic finale to the year as (particularly wet) owners look to cash in at the best levels seen in the recycling markets since the heady days of 2008.
Overall, steel prices continue to impress across the board and currencies seem to have stabilized for the moment (despite some wobbles in Pakistan and some extreme ones in Turkey of late) and this has somehow led to some of the greater aggression and confidence to buy, as demand for ships ramp up in the fourth quarter of the year.
There has, thus far, been a rather manageable supply of vessels for recyclers to digest and this has also contributed to some of the impressive numbers on show, especially with an increasingly fertile demand for available units.
With the recent uptick in deliveries now calmer over the last few weeks (see local port reports on Page 7), we are witnessing a gradually increasing availability of space at local yards to take in more vessels and despite the recent uptick in the supply of FSUs, Suezmaxes, Aframaxes, MRs, and stainless-steel chemical tankers, it is something of a surprise that not more tonnage has been delivered for recycling at these incredible levels
For week 44 of 2021, GMS demo rankings / pricing for the week are as below.Download PDF