BANGLADESH · down at the core of the Earth. If you could actually get down and sample the core, it...
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Transcript of BANGLADESH · down at the core of the Earth. If you could actually get down and sample the core, it...
Following the catastrophic falls of around USD 150/LDT during the second quarter of the year
and with all subcontinent markets now securing tonnage at increasing numbers of late, the
2020 subcontinent recovery seems nearly complete.
There are some concerns over whether prices will keep going up (and for how long), and
there are even rumors that the BSBA (Bangladesh Ship Breakers Association) may try to form
another cartel next week, in order to put a cap on prices, which a majority of local Recyclers
feel are getting over-inflated once again.
Indeed, there is the feeling that Pakistan has reached its peak, whilst India has endured some
shaky steel prices once again, briefly stalling some of the progress made by this market in
recent weeks. Therefore, there are some doubts from veteran players as to whether the
industry will witness USD 400/LDT (or close) levels on standard, non specialist tonnage any
time soon.
Finally, the Turkish market continues to coast for yet another week, with levels steady, plate
prices on even keel, and the occasional arrival of another unit for EUSRR recycling.
Meanwhile, the world has been witnessing a second wave of Covid infections, particularly
across parts of Europe where there are now increasing fears of a second lockdown. This
comes as at a time when India continues to struggle with record daily cases nearing 100,000
infections, with few signs that this virus is going away any time soon.
With more tonnage starting to be seen for recycling (particularly larger LDT VLOCs of late), it
is set to be a busy end to the year in all sub-continent locations.
For week 38 of 2020, 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 Pakistan Steady 340 / LDT 360 / LDT 370 / LDT
2 Bangladesh Steady 330 / LDT 350 / LDT 360 / LDT
3 India Steady 320 / LDT 340 / LDT 350 / LDT
4 Turkey Steady 200/ LDT 210/ LDT 220/ LDT
GMS successfully concluded the third webinar in their Leadership series this week,
covering the recycling of offshore assets.
In case you missed it, we invite you to view it at https://youtu.be/1SOFJWhbSWY
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,l’ -+Ali / +N
Highlights:
• Recovery complete?
•Cartel rumours.
• Pak peaked?
• Second waves.
• VLOC supply.
• GMS Offshore
Webinar.
PEAKING OUT!
September 18th, 2020
Volume 217, Issue 947
Week 38
“Time is the coin of your life. It is the only coin you have, and only you
can determine how it will be spent. Be careful lest you let other people
spend it for you.” – Kathy Collins
MARKET COMMENTARY
BANGLADESH
BANGLADESH
BANGLADESH
BANGLADESH
BANGLADESH
BANGLADESH
BANGLADESH
BANGLADESH
CARTEL CONCERNS!
There are rumors of a cartel being formed in Bangladesh next week, so that End
Buyers can peg prices at an acceptable level to the cartel, rather than pay the
increasingly heated numbers that seem to be on offer, week after week.
The problem is that if they try to be too cautious in their pricing, they will certainly
miss out to a noticeably higher Pakistani market (where the last few VLOCS have
been sold) or an emerging India. Proof of this lies in the extremely diminished
number of local arrivals, week after week.
In terms of sales this week, the favored PCC unit SINGLE EAGLE (5,048 LDT)
managed to breach the USD 400/Ton mark and fetch an astonishing USD 415/LT
LDT, whilst the Panamax bulker MICHELLE HK (10,338 LDT) was finalized for just
as solid USD 377/LT LDT.
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MARKET SALES REPORTED
VESSEL NAME TYPE LDT REPORTED PRICE
MICHELLE HK Bulker 10,338 USD 377/LT LDT
SINGLE EAGLE PCC 5,048 USD 415/LT LDT
GMS Weekly
High priced sales.
Pegging prices?
INDIA
INDIA
INDIA
INDIA
INDIA
INDIA
INDIA
INDIA
Frustrated end buyers.
SHORTAGE OF SALES!
This week, a shortage of HKC green sales into India has left End Buyers frustrated,
particularly as they witness fixtures at much higher levels (on which, they are simply
unable to compete) head to both Pakistan and Bangladesh.
In troubling developments, due to massively increasing Covid cases (nearly 100,000
infections per day) oxygen supplies are being diverted to local hospitals and away
from ship recycling yards, leading to an unexpected slowdown in cutting.
The Indian Rupee too, has been trading in the mid Rs. 73s against the U.S. Dollar this
week, whilst local steel plate prices have had to endure the usual shakes in recent
weeks, often losing as much as is gained over the course of a few days.
NO MARKET SALES REPORTED
Oxygen shortage.
Page 3 of 8 GMS Weekly
GMS Weekly
DEMAND FULFILLED?
Following a raft of smaller LDT sales into Pakistan last week, it has been a quieter week
in Gadani overall (in terms of SNP activity), with many feeling that the market has
reached its peak and is likely set to go down from here. However, local port position has
been the busiest of all locations, with numerous arrivals / beachings being reported
locally.
There are several unsold VLOCs in Cash Buyer hands that Pakistan and Bangladesh are
competing on, and with Bangladeshi buyers trying to form a cartel to control prices, it
will be interesting to see where these favored large LDT units will eventually end up.
Many of the hottest local Buyers have also filled up their plots during this recent binge
on units and it may be that Gadani prices start to come down in the coming weeks as less
keen / aggressive Buyers come to the bidding tables to play and demand / capacity will
take some time to build up once again.
PAKISTAN
INDIA
INDIA
INDIA
INDIA
INDIA
INDIA
INDIA
Buyers ready to acquire
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NO MARKET SALES REPORTED
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NO MARKET SALES REPORTED
Plots booked.
Lower LDT sales.
GMS Weekly
USD 150/MT
differential.
NO MARKET SALES REPORTED
STEADY!
Despite the Turkish Lira depreciating to record lows week after week (breaching TRY
7.55 against the U.S. Dollar this week), local steel plate prices have managed to stay
steady and keep local offerings on an even keel.
Not much activity is being reported locally from a transactional standpoint, even though
the occasional EUSRR recycling based unit arrives locally.
Covid-19 cases also continue to rise throughout the country even though no official news
of a potential lockdown has been coming forth.
Overall, we anticipate prices to climb further yet, especially as levels from the
subcontinent continue to climb and the price differential starts to jump way past USD
150/MT.
TURKEY
Lira breaks records.
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INDIA BANK HOLIDAYS BEACHING TIDES
No holidays in September
October 02 – Gandhi Jayanti
October 26 – Vijaya Dasami
October 29 – Eid-E-Milad
September 15 – September 23
October 01 – October 06
October 14 – October 22
October 31 – November 06
BANGLADESH BANK HOLIDAYS BEACHING TIDES
No holidays in September
October 26 – Durga Puja
October 30 – Eid-E-Miladun-Nabi
September 17 – September 20
October 01 – October 03
October 16 – October 10
IMPORTANT BANK HOLIDAYS CHINA PAKISTAN TURKEY
No holidays in September
October 01 – 08 – National Day Holiday
No holidays in September
October 30 – Eid-E-Miladun-Nabi
No holidays in September
October 28 – 29 – Republic Day
IMPORTANT DATES
Miscellaneous i
Earth is mostly iron, oxygen and silicon. If you could separate the Earth out into piles of material, you’d get
32.1 % iron, 30.1% oxygen, 15.1% silicon, and 13.9% magnesium. Of course, most of this iron is actually
down at the core of the Earth. If you could actually get down and sample the core, it would be 88% iron. 47% of
the Earth’s crust consists of oxygen.
Earth doesn’t take 24 hours to rotate on its axis. It’s actually 23 hours, 56 minutes and 4 seconds. This is the
amount of time it takes for the Earth to completely rotate around its axis; astronomers call this a sidereal day.
Now wait a second, that means a day is 4 minutes shorter than we think it is. You’d think that time would add
up, day by day, and within a few months, day would be night, and night would be day.
A year on Earth isn’t 365 days. It’s actually 365.2564 days. It’s this extra .2564 days that creates the need for
leap years. That’s why we tack on an extra day in February every year divisible by 4 – 2004, 2008, etc – unless
it’s divisible by 100 (1900, 2100, etc)… unless it’s divisible by 400 (1600, 2000, etc).
Earth has 1 moon and 2 co-orbital satellites. As you’re probably aware, Earth has 1 moon (The Moon). But did
you know there are 2 additional asteroids locked into a co-orbital orbits with Earth? They’re called 3753
Cruithne and 2002 AA29. We won’t go into too much detail about the Moon, I’m sure you’ve heard all about
it.
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Prices indicated above are as reported in the market and are not necessarily accurate. This information is provided without prejudice and is given in
good faith and without any guarantees whatsoever. While every care has been taken in the preparation of this report, no liability can be accepted for
any loss incurred in any way whatsoever by any person relying on the information contained herein. Opinions expressed herein may be deemed
subjective and arbitrary. This WEEKLY is intended only for the person or entity to which it is addressed and may contain confidential and/or
privileged material. Any review, retransmission, dissemination or other use of this information by persons or entities other than the intended
recipient is prohibited.
AMAZING EARTH FACTS
ALANG - Port Position as of Arrived September 18, 2020
No. VESSEL NAME LDT TYPE STATUS
1 Atlantic Highway 15,243 Vehicles Carrier Arrived September 17
2 Cosmos Ace 12,783 Vehicles Carrier Beached September 18
3 Zagora 5,752 Container Beached September 18
Total Tonnage
33,778
CHATTOGRAM - Port Position as of September 18, 2020
No. VESSEL NAME LDT TYPE STATUS
1 Karbeta 603 Tugboat Arrived September 16
2 Topol (Under Tow) 3,540 General Cargo / Container Arrived September 08
3 Uthaiwan 1,748 Reefer Beached September 18
Total Tonnage
5,891
GADANI - Port Position as of September 18, 2020
No. VESSEL NAME LDT TYPE STATUS 1 Al Nabila 5 9,185 Tanker Beached September 15
2 Blue Moon 2,002 General Cargo Beached September 15
3 Elit 4,360 General Cargo Arrived September 15
4 Green Harvest 10,639 Woodchip Carrier Beached September 18
5 Karadeniz Powership Remzi Bey 1,577 Tug Beached September 15
6 Rea 39,231 VLOC Beached September 15
7 Ritaj A 2,877 General Cargo Arrived September 18
8 Stellar Eagle 39,808 VLOC Beached September 19
9 Stellar Galaxy 39,720 VLOC Beached September 19
10 Suryawati 9,500 Bulk Carrier Beached September 18
Total Tonnage
158,899
WHILE EXTREME CARE HAS BEEN TAKEN IN THE PREPARATION OF THIS REPORT, NO LIABILITY CAN BE ACCEPTED FOR ANY LOSS INCURRED IN ANY WAY WHATSOEVER BY ANY PERSON RELYING ON THE INFORMATION CONTAINED HEREIN.
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GMS Port Report
www.gmsinc.net GMS_Leadership GMS, Inc. [email protected]
Athens, Greece Tel: +30.210.899.0669 Bhavnagar, India Tel: +91.278.300.5253
Cumberland, USA Tel: +1.301.759.9240 Dubai, UAE Tel: +971.4.423.0720
Hamburg, Germany Tel: +49.40. 3197.9963 New York, USA: +1.240.505.9716
Shanghai, China Tel: +86.216.075.1900 Seoul, South Korea Tel: +82.10.4650.0720
Singapore Tel: +65.6823.8037 Tokyo, Japan Tel: +81.3.5453.6311
DATEINDIA STEEL
PRICES USD/T
INDIA STEEL
PRICES
PAKISTAN STEEL
PRICES USD/T
PAKISTAN
STEEL PRICES
BANGLADESH STEEL
PRICES USD/T
BANGLADESH
STEEL PRICES
CHINA STEEL
PRICES USD/T
9/12/2020 380.75 28,000.00 537.76 89,000.00 421.05 36,000.00 365.56
9/13/2020 380.75 28,000.00 537.76 89,000.00 428.07 36,600.00 365.56
9/14/2020 381.11 28,000.00 535.66 89,000.00 428.07 36,600.00 364.24
9/15/2020 381.59 28,100.00 535.66 89,000.00 442.11 37,800.00 364.98
9/16/2020 388.96 28,600.00 535.66 89,000.00 442.11 37,800.00 365.65
9/17/2020 388.38 28,600.00 535.66 89,000.00 442.11 37,800.00 366.46
9/18/2020 392.26 28,800.00 535.66 89,000.00 442.11 37,800.00 366.91
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Steel Plate Prices
