The distinctive lack of demand that has
characterized the international markets for the past month or so has left a
fair degree of nervousness in the offerings from end buyers. This has been in
stark contrast to recent cash buying strategies that has seen a number of units
acquired at some truly eye watering numbers.
Indeed, several deals from the past
week seem to suggest that the market may be on the rebound, the Indian rupee
demonstrated a marginal degree of recovery against the US Dollar and steel prices
remained relatively strong amidst some improving demand.
There still remains some disconnect
between cash and end buyer prices however with some convinced that a rally may
just be around the corner. The reality is though that the tonnage keeps on
coming and rates (particularly on the cape front) have struggled to impress for
some time now.
Whilst oil prices surge to some
astonishing levels and owners continue to hold the older gas guzzlers in their
fleet (as opposed to the newer more fuel efficient models), candidates will
continue to hit the market, with perhaps an oversupply ensuring prices stay in
check and perhaps even pushed lower as capacity becomes an issue.
Nevertheless, with the Bangladesh
deadline on the horizon and the expected pre-closure improvement in levels yet
to emerge, it may be only a superficial pick up in price that is seen in the
short term with speculation currently far outweighing the reality on the ground.
For week 37 of 2011, GMS demo rankings
for the week are as below:
|
Country
|
Market
Sentiment
|
Gen Cargo
Prices
|
Tanker Prices
|
|
|
Bullish
|
USD515/ltldt
|
USD540/ltldt
|
|
|
Weak
|
USD510/ltldt
|
USD535/ltldt
|
|
|
Cautious
|
USD485/ltldt
|
USD515/ltldt
|
|
|
Stable
|
USD455/ltldt
|
USD465/ltldt
|
Source: Steel Guru. 20 September 2011
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