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

“Excellence is the unlimited ability to improve the quality of what you have to offer.”

―Rick Pitino

,l’ -+Ali / +N

Highlights:

• Caution.

• Forward steel.

•Covid surge.

• Crew issues.

• Demand good.

COOL SUMMER?

June 4th, 2021

Volume 226, Issue 983

Week 23

“Many of life’s failures are experienced by people who did not realize

how close they were to success when they gave up.”

– Thomas Edison

“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

A greater degree of caution seems to have entered the market this week, both on the Cash and

End Buyers sides, as some of the more bullish offerings seen over the past few months begin to

gradually subside.

Forward steel prices seem to suggest a decline over the summer / monsoon months and along

with upcoming budgets in both Bangladesh and Pakistan, this is sure to put a damper on some

of the overzealous numbers seen recently.

On the far end, Turkey remains steady, however, with a weakening Lira, there are increasing

fears of possible declines in levels in the coming week(s).

Covid-19 continues its unstoppable surge across India and the sub-continent, as well as

resurfacing virus mutations across Asia and Europe once again, as any hopes of a swift end to

this pandemic saga are highly unlikely, despite the increasing rate of global vaccinations.

This means crew repatriation in sub-continent locations (with certain crews not being allowed)

and ‘as is’ take overs (especially in the Far East) have become increasingly challenging as

borders close and restrictions increase at present.

However, there are positive signs on the horizon as demand into all locations remains good,

and a recent slowdown in tonnage means that fewer vessels are being offered for sale into a

market that is still holding steady and the lack of supply can only mean increased demand and

steady / firmer prices.

For week 23 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 Steady 540 / LDT 550 / LDT 560 / LDT

2 Pakistan Steady 530 / LDT 540 / LDT 550 / LDT

3 India Steady 500 / LDT 510 / LDT 520 / LDT

4 Turkey Steady 280 / LDT 290 / LDT 300 / LDT

67(

MARKET COMMENTARY

BANGLADESH

BANGLADESH

BANGLADESH

BANGLADESH

BANGLADESH

BANGLADESH

BANGLADESH

BANGLADESH

SLIPPING!

Bangladesh has started to slip behind their Pakistani competitors, particularly for the

largest units currently on offer.

There remains a belief moving forward that if rates ease off in the traditionally weaker

monsoon / summer months, it would be best to purchase smaller LDT vessels so that

there is less risk involved with the longer cutting times on larger LDT units during the

rains and the possibility of market declines during this time.

Having said that however, very few deals have been done recently to satisfy a decent

local demand and it may be that Bangladesh is content to wait out these next few

months, especially given the vast supply of vessels that have already been beached

locally over the course of the year so far.

Page 2 of 8

NO MARKET SALES REPORTED

GMS Weekly

Few deals.

Losing large.

INDIA

INDIA

INDIA

INDIA

INDIA

INDIA

INDIA

INDIA

Covid disrupts.

OVER THE WORST?

The ongoing Covid pandemic continues to consume India while oxygen supplies are still

being diverted to domestic hospitals and the unfathomable numbers of cases and deaths

(although easing in recent weeks) continue to be reported by the day.

Despite steel prices improving by nearly USD 20/Ton over the course of the week, the

main supply of vessels continues to be non-ferrous (stainless steel) units and little else.

Crew repatriation issues remain in India (for Chinese and various other crews) and so,

on top of most recycling yards being closed and high Covid-19 cases resulting in delays

during inward clearance / repatriation of incoming crew, many Owners are choosing to

avoid Alang deliveries for the time being.

NO MARKET SALES REPORTED

Avoiding Alang.

Page 3 of 8 GMS Weekly

GMS Weekly

CHIPPING AWAY!

Pakistan continues to improve as a market and is slowly starting to chip away at the

Bangladeshi share of tonnage, having secured a number of choice units of late.

The budget is reportedly coming up on June 11th (to be imposed on July 1st) and as such,

all eyes will be on the outcome of the budget as we move into the summer months

(although few changes on the ship recycling sector are expected).

With a growing demand and a number of Gadani Buyers now starting to jump up on price,

we can expect a greater number of vessels to be concluded into Gadani over the coming

month(s).

PAKISTAN

INDIA

INDIA

INDIA

INDIA

INDIA

INDIA

INDIA

Buyers ready to acquire

Page 4 of 8

NO MARKET SALES REPORTED

Demand grows.

Improving.

Sooner than later.

NO MARKET SALES REPORTED

STEADY.

The Turkish market remained steady for another week, with import and local steel prices

relatively unchanged since last week. However, the Turkish Lira depreciated notably this

week, breaching a record-breaking TRY 8.7X levels against the U.S. Dollar.

This has certainly caused a greater degree of concern amongst Aliaga Recyclers, who are

fearing an impending drop in prices. As of now however, with steady steel fundamentals

and lack of available tonnage, levels have remained stable.

Certainly a better time to commit units into Turkey, sooner rather than later.

TURKEY

Lira drops.

Page 5 of 8 GMS Weekly

INDIA BANK HOLIDAYS BEACHING TIDES

No holidays in June

June 08 – June 16

June 21 – June 30

BANGLADESH BANK HOLIDAYS BEACHING TIDES

No holidays in June

June 10 – June 13

June 24 – June 27

IMPORTANT BANK HOLIDAYS CHINA PAKISTAN TURKEY

June 14 – Dragon Boat Festival

No holidays in June

No holidays in June

IMPORTANT DATES

Miscellaneous i

The cast of Friends still earns around $20 million each year. When the show came to an end, the cast of the

popular TV show Friends negotiated syndication rights for themselves. That means they receive a percentage of

the revenue (two percent) from reruns airing across all broadcasting companies. Since the much-loved TV show

still pulls in around $1 billion of revenue, Courtney Cox, David Schwimmer, Jennifer Aniston, Lisa Kudrow,

Matt LeBlanc, and Matthew Perry all make major dough each year for doing, well, nothing—$20 million is the

estimate.

Pluto technically isn't even a year old. Pluto was discovered on February 18th, 1930. It is the farthest (dwarf)

planet from the Sun, requiring it to go a much farther distance than we are used to on Earth. It takes 248 Earth-

years for Pluto to complete one rotation of its own around the sun. This places Pluto's first birthday since its

discovery on Monday, March 23, 2178.

Cows kill more Americans each year than sharks do. While sharks account for about 53 bites per year, only

one of those ends up being fatal. Cows, on the other hand (or hoof), kill around 20 people per year.

In Germany, people help toads cross the road. You might not want to bring up the popular video game

Frogger in Germany. There, they like to protect their frogs, toads, and other amphibians. In order to save them

from harm when crossing the street, conservation organizations installed more than 800 fences along popular

roadways. Along these fences are buckets, so when they try to cross, they eventually hop into one. At the end of

the day, wildlife conservationists collect the buckets and release frogs across the road into a nearby forest with

ponds and lakes.

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 liabi lity 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 June 04, 2021

No. VESSEL NAME LDT TYPE STATUS

1 Bridge 7,615 RoRo Beached June 02

2 China Frost 3,431 Reefer Arrived May 25

3 Dawn (Under Tow) 3,197 Chemical Tanker Beached May 29

4 Falcon 6,695 Ch. Tanker Arrived June 01

5 Gulf Glow III 2,889 Tanker Arrived April 29

6 Ice Ranger 6,931 Reefer Arrived May 31

7 Linda - 1 1,833 Supply Vessel Arrived November 13

8 Mega 2,369 Chemical Tanker Beached May 29

9 Pioneer 2,507 Tanker Arrived June 01

10 Rover (Under Tow) 18,889 MODU Arrived June 01

11 Shun Li 2,427 Ch. Tanker Arrived May 29

12 Tag 16 (Under Tow) 1,473 Supply Arrived June 01

13 Tag 17 1,425 OSV Beached June 02

14 Tage 19 (Under Tow) 1,944 Supply Arrived June 01

Total Tonnage 63,625

CHATTOGRAM - Port Position as of June 04, 2021

No. VESSEL NAME LDT TYPE STATUS

1 CE-Neris 16,337 Tanker Arrived May 31

2 Freesia 1 23,159 Tanker Beached May 30

3 Hua 1 16,062 Tanker Arrived May 28

4 Luck Grow 888 2,419 Tanker Beached May 29

5 Luck Grow 889 2,168 Tanker Arrived June 02

6 Med 20,585 Tanker Arrived June 03

7 MR Star 10,043 Tanker Beached May 30

8 Polaris 4,777 Tanker Beached May 29

9 Sea Jade 5,999 Tanker Beached May 31

10 Since (Under Tow) 15,442 Vehicles Carrier Arrived June 03

11 Sunward 2,275 Tanker Arrived May 31

12 Zhen 17 17,551 Heavy Lift Carrier Arrived May 29

Total Tonnage 136,817

GADANI - Port Position as of June 04, 2021

No. VESSEL NAME LDT TYPE STATUS

1 Baraka 5 7,805 Cattle Carrier Beached June 02

2 Captain Hamada 3,318 General Cargo Beached May 29

3 Elka Vassiliki 17,000 Tanker Arrived May 31

4 Intercom 1 N/A Tug Beached June 04

5 Nolla 1,828 Tanker Beached June 03

6 Toteel 1,944 Tanker Beached June 03

Total Tonnage 31,895

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. snp@gmsinc.net

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

5/29/2021 550.80 39,900.00 693.68 107,000.00 631.58 54,000.00 463.06

5/30/2021 550.80 39,900.00 693.68 107,000.00 625.73 53,500.00 463.06

5/31/2021 549.51 39,900.00 693.68 107,000.00 625.73 53,500.00 473.45

6/1/2021 547.33 39,900.00 693.68 107,000.00 619.88 53,000.00 474.27

6/2/2021 558.22 40,800.00 693.68 107,000.00 616.37 52,700.00 472.77

6/3/2021 566.45 41,300.00 693.68 107,000.00 616.37 52,700.00 472.49

6/4/2021 568.34 41,500.00 693.68 107,000.00 616.37 52,700.00 470.56

Page 8 of 8

Steel Plate Prices