1 / 8

GMW Weekly Facts April 24th, 2020

www.gmsinc.net

4950
Download Presentation

GMW Weekly Facts April 24th, 2020

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ,l’ -+Ali / +N April 24th, 2020 Volume 212, Issue 927 Week 17 “Everything will be ok in the end, if it's not ok, it's not the end.” - Unknown Highlights: MARKET COMMENTARY TAKING TIME! • Cases rise. •Small concessions. • Still closed. • Extensions. • Loan default. • Prices unknown. As the number of Covid-19 cases continues to rise across the globe, the expected / enforced lockdowns across all subcontinent markets have been further extended until May 4th at least. However, there have reportedly been some small concessions made in India this week, as a select number of local recycling yards that have been actively practicing social distancing and ensuring protective gear is being provided to yard workers, are now being permitted to commence cutting activities slowly and responsibly. This does not mean that India is open by a long shot as all flights are still grounded, foreigners are denied entry, and any vessels arriving Alang for recycling are not being permitted into port limits, with no boardings, beachings, and deliveries taking place yet. The expectation is that things are going to move at a slow and methodical pace (until the virus is brought under control) across all subcontinent locations & Turkey and lockdown measures could well be extended further, as with many parts of Europe and Asia, where shutdown / quarantine measures have been extended until June 1st. Finally, with the onset of Ramadan, countries celebrating the religious month are expected to remain out of the game for the most part, which may come hand-in-hand with the ongoing global quarantine and lack of any workable tonnage presently in the market. In other interesting news away from the Coronavirus pandemic, it emerged this week that one well known cash buying entity is facing legal action over supposed fraud to the tune of about USD 76 Million. Five private equity funds are chasing the Cash Buyer over unpaid loans and it may therefore be some time before we see them back in the game. For week 17 of 2020, GMS demo rankings / pricing for the week are as below. ALL AT GMS WOULD LIKE TO WISH READERS A RAMADAN KAREEM! 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

  2. GMS Weekly Page 2 of 8 BANGLADESH RAMADAN RESTRICTIONS! Last week, many in the industry were surprised to hear about the sale of the Sinokor controlled VLOC HBIS SUNRISE (38,222 LDT) for a decent USD 310/LT LDT, basis an ‘as is’ Singapore delivery with about 2,700 Tons of bunkers remaining on board at the time of delivery. Since no crew can travel for the take over in Singapore, the Buyers intend to retain Seller’s crew on board until they are able to mobilize their crew for take over, once the markets start to open up again. Logically, with all subcontinent locations currently closed, the resale destination remains unclear at this juncture. So it certainly is a speculative purchase from the concerned Cash Buyer. However, with the vessel being in Singapore and provided that post-closure prices are not drastically off, she will likely be a Bangladesh candidate, especially given the preference of Chattogram Recyclers for larger LDT vessels. As it stands, the Bangladeshi government has extended their lockdown measures until May 4th and it is likely that there will be no clearance on existing vessels until then and no import of fresh vessels will be permitted either. Yards remain closed in Chattogram and no cutting activity is currently taking place. Finally, during the month of Ramadan, it is expected to be a quieter period as citizens are urged to self isolate and practice social distancing. VLOC questions. Market still shut. NO MARKET SALES REPORTED

  3. GMS Weekly Page 3 of 8 INDIA CAUTIOUS CUTTING! There was some easing of restrictions in Alang this week, as a very few select yards were granted special permissions and were allowed to resume limited cutting operations, so long as their workers continued to strictly practice safe social distancing regulations and were being issued the appropriate safety equipment. To be clear, no new arrivals of fresh vessels have been allowed and even vessels still stuck at anchorage are being denied boardings and beaching permissions for the time being. Foreign crew are not being allowed into India and flights are not operating to permit Indian crew to fly out in order to take over any ‘as is’ vessels either. As such, the Indian market remains on a total shutdown with virtually no activity emanating from Alang. Finally, info on steel plate prices and the levels to expect once the market is reopens has yet to really emerge from the Alang, even though it is clear that the currency has drastically depreciated by nearly 10%, from Rs. 71 to (briefly) over Rs. 77 against the U.S. Dollar of late. Small steps. Crew restrictions. NO MARKET SALES REPORTED

  4. NO MARKET SALES REPORTED GMS Weekly Page 4 of 8 Page 5 of 8 PAKISTAN CURBING THE SPREAD! Pakistan has extended its country-wide lockdown until May 4th. Moreover, with the onset of Ramadan holidays, it is expected to be a much quieter time across the country in the coming month. As with many countries across the globe, the goal is to curb the spread of the virus, which had started to spread out of control in the early stages. However, since quarantine measures were put in place, the Pakistani government has had a degree of success, at least in flattening the curve. At present, all flights in and out of the country have been grounded as the government has taken swift and decisive action to ensure the safety of its citizens in these troubling times. Ramadan rules. Grounded. NO MARKET SALES REPORTED

  5. Page 5 of 8 GMS Weekly TURKEY WEAKENED AND QUIET! While plate prices reported no major changes, this week, the Turkish Lira weakened significantly against the U.S. Dollar, breaching the TRY 7.0 mark several times before ending the week at TRY 6.97. In fact, local industry players are not only expecting further declines in the coming week and anticipating the Lira to settle deeper into TRY 7.X territory, they are also expecting even more troubling levels on plate prices to come forth. Locally, the Turkish market was reportedly open for only 3 days this week as Thursday was a national holiday and the Turkish government extended the holiday into Friday as well. As such, even with the onset of Ramadan holidays, the country remains on lockdown. At the moment, Local Buyers are not aggressive to buy any tonnage for, given the restrictions of repatriating crew arriving on units under own power. As a result, indicative offerings below USD 200/MT have been reportedly tabled on the odd unit that is being proposed locally. As the lockdown continues and the Turkish market is generally slower during the month of Ramadan, we do not expect any positive news to emanate from this market in the near future. Lira jumps past 7. Below 200. NO MARKET SALES REPORTED

  6. Miscellaneous i Page 6 of 8 FUN FACTS When you talk, you spray around 2.5 microscopic saliva droplets per word. Rats cannot vomit, and neither can horses. Every year, 11,000 injuries are reported in America as a result of sexual experimentation. 620 million years ago, an Earth day was only 21.9 hours long. It is extending a little every year. A 12-year-old girl from Ethiopia was kidnapped by four men on her way from school. A week later the whole group was accosted by three lions who chased the men away and stayed with the girl without harming her, only leaving when the police arrived, looking for her. A now teenage boy called Ben Underwood lost his sight to cancer when he was 3 years old. He learned to use echolocation (orientation in space by sound that e.g. bats use) in order to sense his surroundings. Today he can play table soccer, basketball, he does karate, roller blades, enjoys pillow fights and much more. Our ears and our nose never stop growing. In 1994, a man was arrested because he was dressed as the Grim Reaper and just stood and stared into the windows of a home for the elderly. Bulgarians nod when they want to say NO and shake their heads when they want to say YES. IMPORTANT DATES INDIA BEACHING TIDES April 22 – April 28 May 05 – May 12 May 21 – May 28 BANK HOLIDAYS May 01 – May Day May 07 – Buddha Purnima May 24 - Eid-ul-Fitr BANGLADESH BANK HOLIDAYS May 01 – May Day May 06 – Buddha Purnima May 21 – Shab-e-Qadar May 22 – Jamatul Wida May 24 – May 26 – Eid-ul-Fitr BEACHING TIDES April 19 – April 22 May 07 – May 10 May 23 – May 26 IMPORTANT BANK HOLIDAYS PAKISTAN May 01 – Labor Day May 07 – Buddha Purnima May 25 – May 27 – Eid-ul-Fitr CHINA TURKEY May 01 – May 05 – Labor Day May 23 – May 26 - Ramadan 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 24, 2020 No. 1 2 3 4 Total Tonnage VESSEL NAME LDT TYPE STATUS Arrived April 02 Arrived April 02 Arrived March 26 Arrived April 17 Aaditya 1 (Under Tow) Mard Naashi (Under Tow) Seafrost (Under Tow) 636 763 2,787 6,417 10,603 Supply Vessel Supply Vessel Jackup Oil Tanker CHATTOGRAM - Port Position as of April 24, 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 24, 2020 No. 1 Total Tonnage VESSEL NAME LDT TYPE Tanker STATUS Beached April 22 Soulina 1,284 1,284 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 4/18/2020 NA NO SALES NA NO SALES NA NO SALES 287.06 4/19/2020 NA NO SALES NA NO SALES NA NO SALES 287.06 4/20/2020 NA NO SALES NA NO SALES NA NO SALES 298.63 4/21/2020 NA NO SALES NA NO SALES NA NO SALES 299.64 4/22/2020 NA NO SALES NA NO SALES NA NO SALES 308.87 4/23/2020 NA NO SALES NA NO SALES NA NO SALES 308.94 4/24/2020 NA NO SALES NA NO SALES NA NO SALES 309.31 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

More Related