“seeking excellence means choosing to forge your own sword

GMS_Leadershipwww.gmsinc.net GMS Inc gms.incGMS,Inc.

“Seeking excellence means choosing to forge your own

sword to cut through the limitations of your life…”

- James A. Murphy

,l’ -+Ali / +N

Highlights:

• Impressive week.

• Cobwebs gone.

•Firm fundamentals.

• Supply slow.

• Incredible levels.

SURGING AHEAD!

October 29th, 2021

Volume 230, Issue 1004

Week 44

“A master can tell you what he expects of you.

A teacher, though, awakens your own expectations.”

– Patricia Neal

“There are only two options regarding commitment. You're either in or

you're out. There's no such thing as life in-between.”

– Kathy Collins

It has been another impressive week in the Indian sub-continent ship recycling markets as

prices pushed on past USD 600/LDT (especially on certain decent spec vessels) and as the

cobwebs from the September sub-continent lull seem to have been well and truly blown away

at this time, prices seem likely to push on to their highest levels of the year thus far.

On the Western end, the Turkish market had a bit of a counter re-adjustment this week, as

import steel dropped by about USD 10/MT, whilst demand still remains strong, especially for

deliveries in Q1 of 2022.

It therefore looks increasingly set to be a frantic finale to the year as (particularly wet) owners

look to cash in at the best levels seen in the recycling markets since the heady days of 2008.

Overall, steel prices continue to impress across the board and currencies seem to have stabilized

for the moment (despite some wobbles in Pakistan and some extreme ones in Turkey of late)

and this has somehow led to some of the greater aggression and confidence to buy, as demand

for ships ramp up in the fourth quarter of the year.

There has, thus far, been a rather manageable supply of vessels for recyclers to digest and this

has also contributed to some of the impressive numbers on show, especially with an

increasingly fertile demand for available units.

With the recent uptick in deliveries now calmer over the last few weeks (see local port reports on

Page 7), we are witnessing a gradually increasing availability of space at local yards to take in

more vessels and despite the recent uptick in the supply of FSUs, Suezmaxes, Aframaxes, MRs,

and stainless-steel chemical tankers, it is something of a surprise that not more tonnage has

been delivered for recycling at these incredible levels

For week 44 of 2021, GMS demo rankings / pricing for the week are as below.

Demo

Rank Location Sentiment

Dry Bulk

USD / LDT

Tankers

USD / LDT

Containers

USD / LDT

1 Bangladesh Improving 600 / LDT 610 / LDT 620 / LDT

2 Pakistan Improving 590 / LDT 600 / LDT 610 / LDT

3 India Improving 580 / LDT 590 / LDT 600 / LDT

4 Turkey Improving 300 / LDT 310 / LDT 320 / LDT

67(

MARKET COMMENTARY

BANGLADESH

BANGLADESH

BANGLADESH

BANGLADESH

BANGLADESH

BANGLADESH

BANGLADESH

BANGLADESH

LION’S SHARE!

Bangladesh has once again maintained its pole-position in the market rankings this

week, surging ahead with some impressive purchases from existing Cash Buyer

inventories.

There have been few new purchases to get their teeth into this week, but one or two

FSUs from Cash Buyer inventories have been reportedly committed to Chattogram

Buyers and are currently undergoing the lengthy hot works cleaning process required

to clear the vessels in.

Notwithstanding, competition remains fierce and India and Pakistan are certainly

creeping up to compete with the rampant Bangladeshi Buyers, so they will need to

remain on their toes to continue to secure the lions share of the market tonnage as

Chattogram enters the final months of the year.

Page 2 of 8

NO MARKET SALES REPORTED

GMS Weekly

Others compete.

Market of moment.

INDIA

INDIA

INDIA

INDIA

INDIA

INDIA

INDIA

INDIA

Sales last week.

HUNGRY FOR HKC!

Last week, a number of sales were concluded to hungry Alang Recyclers – including

several older Ropax units and some tankers intended for HKC recycling.

The Indian Rupee has firmed a little against the U.S. Dollar this week, as it currently

trades in the high Rs. 74s, whilst steel prices continue to perform admirably, leaving

fundamentals on a very firm footing for local Buyers and steel mills.

With all three markets in such close proximity of each other, it will be interesting to see

where the remainder of units head for the year and if geographic location eventually

becomes the deciding factor in determining the unit’s final destination.


Strong competition.

Page 3 of 8 GMS Weekly

GMS Weekly

NEED INTENT!

As the currency gradually stabilizes in Pakistan, demand and market pricing have become

competitive once again, against the soaring Indian and Bangladeshi markets.

However, very few market sales have been concluded into Pakistan and Gadani Recyclers

are certainly hoping to get back into the action, to fill currently empty yards.

Overall, Bangladesh continues to steal the thunder for another week, though vessel

offerings from both markets are not too far apart and with a bit more intent, Pakistan can

certainly secure their share of market tonnage once again.

PAKISTAN

INDIA

INDIA

INDIA

INDIA

INDIA

INDIA

INDIA

Buyers ready to acquire

Page 4 of 8


Not far behind.

Back competing.

Quieter period?


RE-ADUSTING!

The Turkish market has been on a climb of late, with import steel prices improving nearly

USD 40/Ton, while the Turkish Lira plummeted to record lows against the U.S. Dollar.

This dichotomy managed to push levels up above USD 300/Ton across the board for all

types of vessels last week and despite import steel declining about USD 10/Ton this week,

local offerings have held steady – albeit, with caution.

Local demand certainly remains strong, with keen interest on units destined for a 2022 Q1

delivery. However, with winter now descending in EU waters and a tighter restriction on

tows, we expect it to gradually become a quieter period in Turkey (especially for offshore

undertow units).

TURKEY

Plate tumbles.

Page 5 of 8 GMS Weekly

INDIA BANK HOLIDAYS BEACHING TIDES

November 04 - Diwali

October 19 – October 25

November 05 – November 11


BANGLADESH BANK HOLIDAYS BEACHING TIDES

No holidays in November



IMPORTANT BANK HOLIDAYS CHINA PAKISTAN TURKEY

No holidays in November.



IMPORTANT DATES

Miscellaneous i

Glaciers and ice sheets hold about 69 percent of the world's freshwater. Just over 96% of the

total amount of the world's water is held in its oceans, according to Water in Crisis: A Guide to the

World's Fresh Water Resources via the United States Geological Survey (USGS). However, that's

primarily saltwater. To find the bulk of the world's freshwater you need to trek to the poles, as 68.7% of

it is encased in ice caps, permanent snow, and glaciers.

The fastest gust of wind ever recorded on Earth was 253 miles per hour. In 1996, a tropical

cyclone named Olivia hit off the coast of Barrow Island, Australia with such a force that it broke an

incredible record. According to The Weather Channel, "Olivia's eyewall produced five extreme three-

second wind gusts, the peak of which was a 253 mph gust," which blew past the previous wind record

of 231 mph set in Mount Washington, New Hampshire back in 1934.

Recent droughts in Europe were the worst in 2,100 years. Europe has been experiencing serious

dry spells and extreme heat since 2015, which has caused major droughts. Research done led by the

University of Cambridge (and published on the National Oceanic and Atmospheric Administration

website) looked at isotopes in the rings of old European Oak trees in Central Europe which formed over

thousands of years to try to pin down the cause. They discovered that the dry spells are a "result of

human-caused climate change and associated shifts in the jet stream," according to EurekAlert!

Page 6 of 8

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.

AMAZING FACTS

ALANG - Port Position as of October 29, 2021

No. VESSEL NAME LDT TYPE STATUS

1 Bunga 13,037 Chemical Tanker Arrived October 28

2 Duruca 2,718 Chemical Tanker Arrived October 25

3 Golden Tulip 6,582 Chemical Tanker Beached October 26

4 Inter G (Under Tow) 1,179 Supply Vessel Beached October 28

5 Jupiter 1,632 Fishing Vessel Arrived October 12

6 Karen Knutsen 25,865 Oil Tanker Beached October 24

7 LPH (Under Tow) 16,399 Jack Up Beached October 23

8 Melati Setu 10,211 Chemical Tanker Arrived October 29

9 River R 435 Tug Beached October 28

Total Tonnage 78,058

CHATTOGRAM - Port Position as of October 29, 2021


1 Harin Navee 8 780 General Cargo Beached October 22

2 Pandora 959 Fishing Vessel Arrived October 12

3 Tina 12,236 Tanker Arrived October 28


GADANI - Port Position as of October 28, 2021


1 Alba Sun 16,000 Tanker Arrived October 25

2 Ingrid 15,954 Tanker Arrived October 25

3 InterSea 1,503 Tug Arrived October 13

4 Lucky Dolphin 7,486 Tanker Beached October 23

5 Medrock 4 1,875 N/A Arrived October 27

6 Meran 1,820 N/A Arrived October 25

7 San 6,000 Tanker Arrived October 24


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.

Page 7 of 8

GMS Port Report

www.gmsinc.net GMS_Leadership GMS, Inc. [email protected]

Athens, Greece Tel: +30.210.899.0669 Bhavnagar, India Tel: +91.278.300.5253

Cumberland, USA Tel: +1.301.759.9240 Dubai, UAE Tel: +971.4.423.0720

Hamburg, Germany Tel: +49.40. 3197.9963 New York, USA: +1.240.505.9716

Shanghai, China Tel: +86.216.075.1900 Seoul, South Korea Tel: +82.10.4650.0720

Singapore Tel: +65.6823.8037 Tokyo, Japan Tel: +81.3.5453.6311

DATEINDIA 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

10/23/2021 600.80 45,000.00 783.40 134,000.00 664.33 56,800.00 547.03

10/24/2021 600.80 45,000.00 783.40 134,000.00 664.33 56,800.00 547.03

10/25/2021 596.70 44,800.00 791.06 138,000.00 683.04 58,400.00 531.10

10/26/2021 589.65 44,200.00 791.06 138,000.00 683.04 58,400.00 531.10

10/27/2021 587.84 44,100.00 791.06 138,000.00 683.04 58,400.00 531.10

10/28/2021 592.63 44,400.00 791.06 138,000.00 683.04 58,400.00 526.13

10/29/2021 593.50 44,400.00 791.06 138,000.00 683.04 58,400.00 526.13

Page 8 of 8

Steel Plate Prices

“seeking excellence means choosing to forge your own sword

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