The international ship
recycling malaise that has gripped the markets over these recent / summer
months continues for another week, with minimal-to-no activity and barely any
firm interest from Recyclers, whilst fundamentals remain ever so fragile.
Steel plate prices have once
again started to display their share of volatility in India, in addition to the
currency that showed signs of firming towards Rs. 79.20 against the U.S.
Dollar, whilst weakening back towards Rs. 80 mark before the week ended.
The Pakistani and
Bangladeshi economies continue to teeter precariously on the edge with
currencies and plate prices continuing to display some grasping signs of
stability (against the U.S. Dollar) at their weakest levels ever. Although
there seems no danger of a repeat of the Sri Lanka collapse that most
pessimistic Recyclers in the sub-continent have been fearing.
Finally, the Turkish market
continues to plummet and languish in the doldrums, with falling plate prices
and vessel prices that are on their respective precipices of another drop away
from oblivion.
Meanwhile, dry bulk charter
rates in the larger segments have started to cool off of late, but many are
expecting (and hoping) for a rebound come fourth quarter of the year. As such,
there is not too much of an expectation on an increase in the number of
recycling candidates just yet. Even in the most beleaguered sector of the
shipping industry – VLCCs – has seen charter earnings and rates / interest rise
once again, and this is further depriving ship-recycling markets of a supply of
tonnage.
Overall, in the industry,
L/Cs over USD 3 million (rumored to be further reduced to USD 2 Million) are
struggling to get approvals from the Central State Bank in Bangladesh, so this
is ruling out the import of most larger LDT tonnage into the country. It will
take some time for the economic crisis and foreign currency woes to settle down
there, before activity can return to some form of normality.
For week 33 of 2022, GMS demo rankings / pricing for the week are
as below.
Demo
Rank |
Location |
Sentiment |
Dry
Bulk USD
/ LDT |
Tankers USD
/ LDT |
Containers USD
/ LDT |
1 |
Bangladesh |
Weak |
570 / (small) LDT |
580 / (small) LDT |
590 / (small) LDT |
2 |
India |
Weak |
560 / LDT |
570 / LDT |
580 / LDT |
3 |
Pakistan |
Weak |
550 / LDT |
560 / LDT |
570 / LDT |
4 |
Turkey |
Weak |
240 / LDT |
250 / LDT |
260 / LDT |
To read the remainder of the GMS WEEKLY, please visit https://gmsstagecdn.ams3.cdn.digitaloceanspaces.com/uploads_prod/weekly/Ship-recycling-market-insight-week-33-2022-Malaise.pdf
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