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GMS Weekly Apr 2020

Latest on ship recycling industry through GMS Weekly

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GMS Weekly Apr 2020

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  1. ,l’ -+Ali / +N April 10th, 2020 Volume 212, Issue 925 Week 15 “We are what we pretend to be, so we must be careful about what we pretend to be.” - Kurt Vonnegut Highlights: MARKET COMMENTARY NO END IN SIGHT! • Strict lockdown. •Deliveries failing. • Backlog. • Shipping backseat. • Extended lockdown. • Turkey firms. With all subcontinent locations still under a strict lockdown and virtually all global ports similarly observing quarantine measures, the deal flow for both trading and recycling markets have expectedly ground to a halt. With so many countries now refusing entry & exit of international crew and indeed denying vessels anchoring permissions at the various as is ports, it is virtually impossible to take over any ‘as is’ vessels any more. Moreover, there is no way to get vessels delivered into the various recycling destinations, with recycling nations imposing similar restrictions on incoming units with international crew. Consequently, there is a growing backlog of units into India & Bangladesh (as evident from the respective port positions) and anxious Ship Owners and Cash Buyers wait for news on a market reopening as they desperately try to salvage failing deals due to force majeure conditions or cancelling dates coming sharply into view as arrivals and inward clearances are severely restricted. With thousands of lives being lost every day in the grim battle against Covid-19, it would be churlish to suggest that shipping and deals are at the forefront of people’s minds at present. Saving lives and sacrificing for the greater good have become the priority in recent times and nowhere has that come under the microscope more acutely than in India, where Prime Minister Modi has enforced the largest ever lockdown, with 1.34 billion people ordered to stay at home, in an effort to curb the rampant spread of this virus. The news we are getting from all subcontinent locations is that the existing government ordered lockdowns in Pakistan, India and Bangladesh are set to be extended - at least until the end of this month, rendering any deliveries there impossible for the foreseeable future. Finally, even though the Turkish market recorded a mild improvement this week, like the subcontinent markets, we don’t expect any noteworthy activity from this market. For week 15 of 2020, GMS demo rankings / pricing for the week are as below. Demo Rank USD / LDT 1 India Weak 2 Bangladesh Weak 3 Pakistan Weak 4 Turkey Weak Dry Bulk Tankers USD / LDT N/A N/A N/A N/A Containers USD / LDT N/A N/A N/A N/A Location Sentiment N/A N/A N/A N/A \ All at GMS would like to wish readers a Happy Easter and encourage everybody to remain inside and to stay safe and healthy!

  2. GMS Weekly Page 2 of 8 BANGLADESH SPREAD! As cases continue to spread throughout Bangladesh, the government has started to impose tougher measures and ordered the population at large, to stay at home and non-essential industries (including ship recycling) to shut down. Lockdown measures have been extended from April 14th to April 25th and the government will further review the situation thereafter, whether another extension needs to be ordered until the end of April or even early May. If the virus takes hold in a developing nation like Bangladesh that reportedly still has a budding health care system to deal with such a major outbreak, it could spell disaster in terms of lives lost. As such, the utmost care and caution must be taken when considering when to open the country up again. Tougher measures. Caution urged. NO MARKET SALES REPORTED

  3. GMS Weekly Page 3 of 8 INDIA MEASURES EXTENDED! Cases in India (especially within several slums in Mumbai) have been rising at a rapid rate and it is therefore unsurprising to see the states of Maharashtra and Punjab extend their lockdown period until the end of April, with others to follow suit within next week. At this stage, there is no telling when the market may open up, with many considering the disease still to be in its early stages in the country (as compared to other Asian locations and Europe). As such, there may be a staged opening of different sectors when May comes around, but in terms of ‘non-essential’ sectors such as ship recycling, it is simply a waiting game at present. In the meantime, the Indian Rupee has been trading in the high Rs. 75s against the U.S. Dollar, whilst steel markets remain closed and banks, although open, will prove extremely difficult to work with, especially when it comes to sanctioning new L/Cs. Rising cases. LC troubles. NO MARKET SALES REPORTED

  4. NO MARKET SALES REPORTED GMS Weekly Page 4 of 8 Page 5 of 8 PAKISTAN ALARMING RISE! Pakistan has likewise seen an alarming rise in Covid-19 cases this week and the government has had to take drastic action to annex 11 closely packed quarters within the hardest hit city of Karachi. Gadani was the first subcontinent ship recycling market to close its doors and any arriving ships have since been turned away, although with both India and Bangladesh on complete lockdown now, this is proving to be an extremely frustrating period of limbo for those owners with tonnage to sell. Indeed, many have no other option but to lay up their vessels and just as the majority of the global population is stuck indoors, several ships and their crew members are laying inert, waiting for the markets to reopen and for the world to get back on a stable footing. Karachi annex. Vessels idle. NO MARKET SALES REPORTED

  5. Page 5 of 8 GMS Weekly TURKEY JUMPY!! The Turkish steel plate prices recorded a minor jump this week (closing the week at region USD 235/MT) as did the Turkish Lira firm up to TRY 6.70 mark against the U.S. Dollar. But with Covid-19 cases affecting all of the shipping ports in the world, deliveries are all but ceased and local offerings have nearly disappeared. As such, Turkey, like the rest of the industry, will suffer through this latest form of lockdown. Fundamentals jump. Suffering. NO MARKET SALES REPORTED

  6. Miscellaneous i Page 6 of 8 FUN FACTS About 700 grapes go into one bottle of wine. That's approximately 2.6 pounds, if you're wondering how much "fruit" you get when you uncork your favorite red. Fear of the number 13 is called triskaidekaphobia. Irrationally scared of clowns? You might have coulrophobia. Oh, and gephyrophobia is a fear of bridges. A $1 bill costs 5 cents to make. According to the Federal Reserve, each buck lasts about six years, and there's about $1.79 trillion of U.S. currency in circulation right now. The Spotify track with the most streams in a day is 24 years old. Just in November, Mariah Carey's "All I Want for Christmas Is You" set the Guinness World Record for the most-streamed track on Spotify in 24 hours — more than two decades after the 1994 holiday hit's release. The Crown Jewels contain the two biggest cut diamonds on Earth. They both came from the Cullinan Diamond, a 3,106-carat gem found in South Africa in 1905. The largest stone, called the Great Star of Africa, is in the Sovereign's Sceptre, while the second largest is mounted in the Imperial State Crown. The Oscars used to give out an award to child performers. The award show discontinued the Academy Juvenile Award in 1960 after famous names like Shirley Temple and Judy Garland nabbed the honor. Also no longer on the ballot? Best Dance Direction and Best Title Writing. IMPORTANT DATES INDIA BEACHING TIDES April 06 – April 13 April 22 – April 28 BANK HOLIDAYS April 10 – Good Friday April 14 – Dr. Babasaheb Ambedkar Jayanthi April 25 - Maharshi Parshuram Jayanti BANGLADESH BANK HOLIDAYS April 08 - Shab e-Barat April 14 –Bangladeshi New Year’s Day BEACHING TIDES April 03 – April 06 April 19 – April 22 IMPORTANT BANK HOLIDAYS PAKISTAN CHINA TURKEY April 04 – 06 – Ching Ming Festival April 23 - Bank Holiday April 24 - Ramzan April 23 – National Sovereignity & Children’s Day 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.

  7. GMS Port Report Page 7 of 8 ALANG - Port Position as of April 10, 2020 No. 1 2 3 Total Tonnage VESSEL NAME LDT TYPE STATUS Arrived April 02 Arrived April 02 Arrived March 26 Aaditya 1 (Under Tow) Mard Naashi (Under Tow) 636 763 2,787 4,186 Supply Vessel Supply Vessel Jackup CHATTOGRAM - Port Position as of April 10, 2020 No. 1 2 3 4 5 6 7 8 9 10 Total Tonnage VESSEL NAME LDT TYPE Bulk Carrier Bulk Carrier Bulk Carrier Tug Tug Bulk Carrier Container Bulk Ore Carrier Bulk Carrier Bulk Carrier STATUS Arrived March 23 Arrived March 19 Arrived March 31 Arrived March 19 Arrived March 19 Arrived March 17 Arrived March 23 Arrived March 20 Arrived March 23 Arrived March 21 Berge Aoraki Cape Stefanie Crateus Kambar Ocean Crest Orfeus Star of Luck Stellar Rio Usolie Yu Hua 21,285 21,221 9,135 512 466 23,910 6,847 46,226 10,243 7,636 147,481 GADANI - Port Position as of April 10, 2020 No. VESSEL NAME LDT TYPE STATUS No new vessels reported. Total Tonnage - 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.

  8. Steel Plate Prices Page 8 of 8 INDIA 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 DATE 4/4/2020 NA NO SALES NA NO SALES NA NO SALES 292.53 4/5/2020 NA NO SALES NA NO SALES NA NO SALES 292.53 4/6/2020 NA NO SALES NA NO SALES NA NO SALES 292.53 4/7/2020 NA NO SALES NA NO SALES NA NO SALES 281.93 4/8/2020 NA NO SALES NA NO SALES NA NO SALES 278.08 4/9/2020 NA NO SALES NA NO SALES NA NO SALES 277.87 4/10/2020 NA NO SALES NA NO SALES NA NO SALES 278.59 www.gmsinc.net GMS_Leadership GMS, Inc. snp@gmsinc.net Athens, Greece Tel: +30.210.899.0669 Cumberland, USA Tel: +1.301.759.9240 Hamburg, Germany Tel: +49.40.3197.9963 Shanghai, China Tel: +86.216.075.1900 Singapore Tel: +65.6823.8037 Bhavnagar, India Tel: +91.278.300.5253 Dubai, UAE Tel: +971.4.423.0720 New York, USA: +1.240.505.9716 Seoul, South Korea Tel: +82.10.4650.0720 Tokyo, Japan Tel: +81.3.5453.6311

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