GMS Reports Feverish Buying in Ship Recycling Markets

Cash buyer GMS reports another week of “astonishing” activity in sub-continent ship recycling markets, with owners and cash buyers primarily focusing on the Indian market where several extraordinarily priced container sales reportedly took place over the recent weeks.

The $600/ton mark was even exceeded on a container unit once again, in what seems to be the surest sign yet, that sentiments and demand in Alang are back on track, says GMS.

Pakistan is not too far behind India, with some select dry bulk sales to Gadani recyclers who are now re-emerging and have line of credit approvals in place, whilst Bangladesh has been left behind in the doldrums during another dreadful week for domestic recyclers there.

Finally, there seems to be some positive movement in Turkey with reports of a firming demand and optimism returning in the market this week.

Indian local steel plate prices gained about $13/LDT last week (as international steel prices simultaneously reported a 2% increase), and this week saw some further gains, before a slight tail off towards the end of the week.

“Notwithstanding, cash buyers continue to speculate on units, and this feverish buying could more than likely lead to some loss-making deals, just for the sake of having vessels in hand to sell. It all seems to be bubbling into some form of vessel-concluding obsession, so inexplicable has the fervor to acquire vessels become – and that too at seemingly unrealistic levels, even if that is at a price that is totally unachievable in today’s market,” says GMS.

“Only time will tell whether these recent purchases turn out well, especially on delivered units. But if cash buyers keep offering well ahead of the market and things turn south, we will witness similar woes to what we saw only a month or so prior, over the recently dire and depressed summer of declines and continual loss-making sub-continent recycling sales.”

For week 38 of 2023, GMS demo rankings / pricing for the week are: