GMS Weekly summarizes the market scenario of week 43, 2022.
Activity and action remain sparse
Activity and action remain sparse across all recycling destinations, with very few (market) sales to speak of, including minimal firm interest or serious numbers from End Buyers that may tempt Owners / Cash Buyers to engage in any meaningful negotiations.
Fundamentals, which remain the primary driving factors of the ongoing volatility, remain precariously poised across all locations, with steel prices volatile / down and currencies still struggling to find stable footing.
As a result, a sort of two tier market has emerged, one where Cash Buyers, Brokers and Owners expect the market to be at a certain level, and another where Local Recyclers seem to be intentionally positioning prices well below asking levels, and both are about USD 50/LDT apart at this time.
Two tier market!
Only on select and favored tonnage, like Russian built tankers or smaller LDT specialized units in decent condition are welcomed with acceptable numbers from the markets, particularly from a picky Bangladesh.
Standard Handy, Panamax Bulk Carriers, and Capes are seeing prices in the mid USD 550s/LDT (if at all), as the number of End Buyers with the ability to establish workable L/Cs across the sub-continent continues to dwindle.
Diwali holidays in India have afforded the market there a break, but the persistent inertia evident in Pakistan and Bangladesh has become a prolonged malaise and is not giving Cash Buyers any confidence to offer on any of the small number of candidates available for recycling, instead preferring the far more bullish trading sector as a viable alternative.
For week 43 of 2022, GMS demo rankings / pricing for the week are as below.
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Source: GMS
