GMS: Some Positive Movement for Ship Recyclers

Cash buyer GMS has seen some positive movement in the sub-continent ship recycling market. “While we do not expect tonnage to come flowing into the markets anytime soon, nor do we expect ship recycling prices to go skywards within this time frame, the ship recycling industry did see some positive movements with improving indications breaking cover from India and even Bangladesh this week.”

Several bulker and container ship sales were made as the market firmed. India remains the primary recipient of recent fixtures, on account of firming local steel prices, far more workable L/Cs, and even a stabilizing demand.

“Bangladesh, meanwhile, is still struggling to get back on its feet after a torrid few months that saw PM Hasina resign and flee the country, an interim government that is struggling to regain control, and chronic flooding covering large swathes of the country.”

Pakistan remains completely out of the picture, says GMS, stranded far behind its sub-continent ship competitors who have only moved further this week.

“Overall, as India’s glimmer of hope stirs recycling sentiments from their summer slumber, only time will tell whether this pricing trend will pervade across all markets.”

GMS demo rankings / pricing for week 39 of 2024 are: