GMS Week 49 – STRETCHED!
Ship recycling markets remained stretched this week – both with the supply of pricey unsold Cash Buyer tonnage, as well as local offerings that seem to be arrowing downwards.
However, there have paradoxically been a number of fresh deals this week, not only at lower overall levels, but also a few spectacularly priced fixtures of specialist vessels, as owners remain determined to shed some of their aging tonnage before the year-end.
Bangladesh continues to be the market of the moment, continually absorbing much of the tonnage even though L/Cs (particularly on the larger LDT vessels) remain a major issue for Chittagong Recyclers and Cash Buyers alike, given the ongoing lack of U.S. Dollars in the country leading to strained credit lines for most banks and in turn, local Recyclers.
India continues to display its share of volatility, both in local steel plate prices as well as the local currency, which has now started to decline against the U.S. Dollar as it breached the Rs. 71 mark once again. Unable to compete with Bangladesh for regular market tonnage, it is the uptick in the supply of green and offshore units that have been the main diet for Alang Recyclers who have managed to secure their share of deals, even at their lower levels.
The Pakistani market remains marooned well behind their subcontinent competitors and as cheap Iranian and Chinese product continues to flood this market, there seems to be little hope for any type of recovery or sustained buying (despite mostly empty plots) for the remainder of the year.
For week 49 of 2018, GMS demo rankings / pricing for the week are as below.Read more
Source: GMS Weekly