01 April 2018

GMS update on Shipbreaking in Turkey in Week 12 - HEAD SCRATCHER!


The Turkish market proved to be a real head-scratcher this week. At the onset, the Turkish Lira declined to its lowest level ever - briefly trudging past the TRY 4.0 mark against the US Dollar but firmed marginally before the end of the week, sitting at TRY 3.98 (at the time of writing). On the flip side, local steel plate prices started to inexplicably rise and have done so over the last couple of weeks.

Why this has given Aliaga Recyclers the impetus to firm up their numbers for ships remains a puzzling phenomena as local offerings have reportedly jumped this week, crossing $300/MT (for tankers).

Is it the potential of a brewing global trade war due to President Trump’s impending tariffs or the feared subsequent collapse of local steel plate prices or the prevailing concerns of far stronger offerings from the sub-continent markets that are compelling Aliaga Recyclers to remain increasingly competitive, are certinaly questions on everyone’s minds.

For now, Ship Owners may revel on the firmer levels, which we suspect won’t be for much longer, especially if the Lira continues to decline.

Source: steel guru. 28 March 2018

No comments: