1. Healthcare

January 30th, 2015
Volume 149, Issue 657
Week 05
“Experience is what causes a person to make new mistakes instead of old
ones.”
- Anonymous
MARKET COMMENTARY
Highlights:
GLOOM RETURNS!
• Volatility strikes.
• No offers
forthcoming.
The volatility and uncertainty that has been so characteristic of the recycling markets during
the first month of this year struck again this week as prices and demand sunk lower yet.
In the sub-continent markets, it was incredibly difficult to elicit any sort of offers from end
buyers troubled by the recent corrections who feared further falls to come. In Turkey, the
market suffered a quick retreat in prices and interest to purchase all but disappeared as the
week ended.
A fresh batch of imported cheap Chinese billets is at the root of the uncertainty, and despite
recent announcements of increased taxes being imposed on these imports in Pakistan and
India, little has been done as far as implementing the much-needed changes.
• Below 400.
• Candidates slow.
Prices on dry vessels are now in the high USD 300s/LT (certain sales above the USD 400/LT
mark have been recorded, but these may be due to bunkers, spares, decent country of build
or favorable size). Yet, even at these more sensible numbers, it is still tough to pin down end
buyers for any significant length of time (such is the volatility in the market and speed with
which minds are changing locally).
Despite another dire week on dry chartering rates, the number of candidates has slowed this
week (particularly on capesize bulkers) as several owners seemed unwilling to cash in at the
lower realities of today.
• Few signs of life.
With few signs of light to lift the recycling sector from its current predicament, the
immediate market prospects therefore remain gloomy. Local governments will have to be
more decisive in minimizing the effect the import of Chinese billets is having and need to
promptly enforce the promised duties to bring about some greater stability.
For week 5 of 2015, GMS demo rankings for the week are as below:
Cash Buyer to be
ISO 9001:2008
Certified
Demo
Ranking
1
2
3
4
5
Country
Bangladesh
India
Pakistan
Turkey
China
Market
Sentiment
Weak
Weak
Weak
Weak
Weak
GEN CARGO
Prices
USD 390/lt ldt
USD 390/lt ldt
USD 385/lt ldt
USD 275/lt ldt
USD 220/lt ldt
TANKER
Prices
USD 415/lt ldt
USD 415/lt ldt
USD 410/lt ldt
USD 285/lt ldt
USD 250/lt ldt
GMS Weekly
Page 2 of 8
BANGLADESH
DISSIPATE!
BANGLADESH
BANGLADESH
Political dramas.
The political strife engulfing the country at present did little to encourage the
domestic recycling sector as working hours (particularly in banks) remain patchy. At
a time when many of the more capable buyers have booked themselves with
tonnage, it has become essential to check and confirm the LC facilities of second and
third tier category of buyers, to ensure they can perform in a timely manner on
incoming units.
BANGLADESH
Hot buyers booked.
Having acquired a number of vessels recently (particularly larger LDT capesize
bulkers), the hunger to buy has largely dissipated from the market and frustrated
owners keen to sell their units have seen prices cool off accordingly.
BANGLADESH
BANGLADESH
The one ship that was committed however, saw the full spares panamax bulker
GREENFIELD 1 obtain a fine USD 409/LT LDT.
BANGLADESH
BANGLADESH
MARKET SALES REPORTED
VESSEL NAME
GREENFIELD 1
TYPE
Bulker
LDT
9,856
REPORTED PRICE
USD 409/LT LDT
GMS Weekly
Page 3 of 8
INDIA
INDIA
STALLED!
INDIA
Despite the Indian Rupee remaining at a decent level in and around Rs. 61 against the
U.S. Dollar, steel prices ensured the market suffered another rollercoaster week, with
some severe losses during the early part of the week.
Steel prices suffer.
INDIA
Nevertheless, many end users are presently of an extremely nervous disposition and
prefer to wait and watch market developments, fearful of further falls, rather than
commit on any new units today. Those who do offer any levels tend to change their
minds without warning.
INDIA
As with Pakistan and Bangladesh, a new load of imported cheap Chinese steel appears
to be causing much of the damage. This is significantly undercutting the inventories on
end buyer plots and is seemingly in never ending supply.
Duties needed.
INDIA
Two deals that were done reflected the present state of the market, with the panamax
bulker INDIA COAL MARU (14,525 LDT) sold for USD 396/LT LDT and the
interesting South African built MPP AQUAR STAR (4,369 LDT) fetching a decent USD
406/LT LDT less comms.
INDIA
Dry sales.
INDIA
MARKET SALES REPORTED
VESSEL NAME
AQUA STAR
INDIA COAL MARU
TYPE
MPP
Bulker
LDT
4,369
14,525
REPORTED PRICE
USD 406/LT LDT
USD 396/LT LDT
GMS Weekly
Page 4 of 8
PAKISTAN
EERIE QUIET!
INDIA
INDIA
End buyers spooked!
It was an eerily quiet week in Pakistan after a recent burst of activity to acquire the
various capesize bulkers on the market. End buyers have been spooked by another load
of cheap Chinese billets being imported into their market and are simply refusing to offer
at present.
INDIA
Those brave enough to offer are talking levels about USD 15/LT LDT less on the prices of
the last done vessels from the previous week!
INDIA
No new sales.
It was no surprise therefore to see no new market sales recorded and if the situation
remains as it is, then there may not be any fresh sales for some time to come as owners
appear reluctant to sell at those levels on offer.
INDIA
INDIA
INDIA
NO MARKET SALES REPORTED
GMS Weekly
Page 5 of 8
CHINA
DOLDRUMS!
With all the other ship recycling markets in the doldrums, China was not able to take
advantage of the situation by offering increased rates and securing a few vessels of their
own.
Indeed numbers also decreased in China to reflect the global trend and leave the price
gap at a mammoth USD 150/LT LDT at the very least (up to USD 200/LT LDT on certain
units).
Of course the supply of cheap state tonnage eligible for the government subsidies is
continuing at pace and in this last year before it expires, recycling yards look set to be
extremely busy absorbing this supply.
NO MARKET SALES REPORTED
Not competitive.
GMS Weekly
Page 6 of 8
TURKEY
CRASH…
Market down $30/LT.
After a relatively healthy month (in terms of pricing and overall sentiment) in the
Turkish market, the threat of the cheap Chinese steel products returned this week as
several steel mills reportedly fixed scrap imports from abroad at very low levels.
As such, local steel plate prices came crashing down and prices for ships followed suit,
retreating about USD 30/LT as the week ended week and any positive sentiment, which
prevailed over January, all but disappeared. Instead, panic and an unwillingness to offer
is now prevalent in the market with rumors that another 10% decrease in the prices could
be expected in the short-term.
With such a sudden depreciation, it remains to be seen how end buyers are going to react
to some of the recently concluded high priced deals.
NO MARKET SALES REPORTED
Miscellaneous
Page 7 of 8
i
HMMMMM…
 The Eisenhower interstate system requires that one mile in every five must be straight. These
straight sections are usable as airstrips in times of war or other emergencies.
 The elephant is the only mammal that can’t jump.
 The first Ford cars had Dodge engines.
 If you are struck by lightning, your skin will be heated to 28,000 degrees Centigrade, hotter than the
surface of the Sun.
 If you trace your family tree back 25 generations, you will have 33,554,432 direct ancestors –
assuming no incest was involved.
 The average distance between the stars in the sky is 20 million miles.
 It would take a modern spaceship 70,000 years to get to the nearest star to earth.
IMPORTANT DATES
INDIA
BANK HOLIDAYS
BEACHING TIDES
February 27 - Mahashivratri
February 01 – February 08
February 17 – February 24
BANGLADESH
BANK HOLIDAYS
BEACHING TIDES
February 21 – Shahid Dibosh
February 06 – February 08
February 20 – February 22
IMPORTANT BANK HOLIDAYS
TURKEY
PAKISTAN
CHINA
No bank holidays in February
February 05 – Kashmir Day
February 18 – Special Working day
February 19 – 24 – First Lunar Month
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.
GMS Port Report
Page 8 of 8
ALANG - Port Position as January 30, 2015
No.
1
2
3
4
5
VESSEL NAME
Asean Wisdom
Hatice Akar
Msc Ada
The Benefactor
Thea
LDT
7,466
4,110
8,135
9,438
13,753
Total Tonnage
TYPE
STATUS
Bulk Carrier
Bulk Carrier
Container
Bulk Carrier
General Cargo
Arrived January 23
Arrived January 29
Arrived January 27
Arrived January 24
Beached January 24
42,902
CHITTAGONG - Port Position as of January 30, 2015
No.
1
2
3
4
5
6
7
8
9
10
11
12
VESSEL NAME
Barguzin
Bright
Elduga
G Rong
Gregory (Dead Vessel)
Hoang Son Sun
Hua Hui
Ios Victory (Dead Vessel)
Kurilskaya Gryada
Lora
Silver Mariner
Yang Pride
Total Tonnage
LDT
1,338
2,877
2,646
5,839
6,457
5,302
7,460
1,963
1,997
9,576
21,478
2,040
TYPE
STATUS
General Cargo
General Cargo
RoRo
General Cargo
RoRo
Bulk Carrier
Tanker
Offshore Tug
Reefer
Bulk Carrier
Bulk Carrier
Waste Disposal Ship
Arrived January 08
Arrived January 19
Arrived January 25
Arrived January 24
Arrived January 21
Arrived January 20
Beached January 28
Beached January 23
Beached January 24
Arrived January 30
Beached January 27
Arrived January 20
68,973
GADANI - Port Position as of January 30, 2015
No.
1
2
3
4
5
6
VESSEL NAME
ABM Leader
Coppersmith
Dal Va
General Piar
Pique
Princess Natalie
Total Tonnage
LDT
8,009
22,541
11,750
16,348
13,624
9,161
TYPE
STATUS
Bulk Carrier
Bulk Carrier
Bulk Carrier
Bulk Carrier
Tanker
Bulk Carrier
Beached January 28
Beached January 30
Beached January 27
Beached January 29
Arrived January 21
Arrived January 23
81,433
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.