According to GMS’ latest weekly ship-recycling report, the signs of the times become increasingly clear and the future -both for the ship recycling community and the world at large- seems ominous, reports Safety4sea.
Victory
The effects of Donald Trump’s shock victory continue to have far-reaching consequences, the U.S. economy strengthens under President Biden with the news that the country is opening up offshore drilling to further reduce American dependence on foreign oil. This, along with China’s waning demand, has caused crude oil to suffer this week, with the barrel falling further to $67, booking a 5% drop by Friday.
Meanwhile, as the destruction of Iran’s arms facilities continues to come to light, the IDF’s demolition of secret Iranian nuclear facilities previously unknown to the world has ignited a fire in the Iranian establishment for revenge.
In the interim, as the U.S. economy continues to strengthen and the U.S. dollar firms against nearly all recycling destination currencies (including China, where Chinese stocks recorded rallies this week), local steel plate falls from China saw various destination steel levels reciprocate with declines of their own this week. Yet, deliveries of dry units continued at pace across Indian and Bangladeshi waterfronts over recent weeks of the declining BDA, including this one.
Pakistan continues to scramble for more IMF funding to stabilize its economy, as buyers there have remained silent, with only laughable offers coming forth of late. Finally, Turkey remains entrenched in its declining lira, with both import and local steel recording USD 10/ton declines across the week, leaving Aliaga levels down by USD 10/MT.
Overall, as various shipping events unfolded across the world, most notably the annual Tradewinds Ship Recycling conference in Copenhagen and Bahri week in Dubai, markets remained on a fairly even footing for the week, with little movement or activity to report. Industry players remained busy with meetings, and sentiments finally seem to be on an even keel, as a healthy collection of sales continue to be confirmed to buyers with ready finances and empty yards.
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Source: Safety4sea
