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GMS Week 6 – RETURN TO SPECULATION!

After an extended period of withering optimism, this week, several sales at curiously high numbers seems to suggest that certain Cash Buyers are confident about a return to form for the market.

India and Pakistan have certainly been down in the dumps for a better part of two months, whilst Bangladesh has been gleefully securing a majority of the market tonnage. However, as demand and capacity is starting to swiftly dwindle in Chittagong, the timing for competing markets to step up and take their share of the available tonnage is certainly ripe.

Apart from offshore units and green tonnage (secured on the whole for well below USD 400/LDT), the port report in India has been starved of market vessels of late and Pakistan has been all but barren since the fourth quarter crash on the Pakistani Rupee last year.

A large number of container vessels have also been sold since the onset of 2019 and particularly for Panamax sized units (of 20,000 LDT and above), the number of end Buyers capable of opening such large value L/Cs (especially in Bangladesh) is starting to run dry.

At the far end, Turkey is finally starting to have a mini-resurgence as local steel plate prices continue to firm up and local offerings improved some more this week. It is therefore inevitable that the focus of the industry will start to shift to other recycling destinations (from Bangladesh), albeit at lower levels.

For week 6 of 2019, GMS demo rankings / pricing for the week are as below.

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Source: GMS Weekly

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