As stock markets across the globe
once again took a battering (particularly in the East), so too did the
international ship recycling markets suffer something of a dramatic week.
Steel prices rose and fell for the
week amidst continuing currency concerns in the largest market India
Indeed, just as prices appeared to
be improving once again following the dramatic fluctuations of the previous
month, severe caution and reticence to offer once again entered the market as
many of the available units were given the cold shoulder by end buyers, particularly
at levels well into the 500s/LT LTD which were considered nearly unworkable
Pakistan seemed to be the only market displaying any signs of bullishness, and
they could well be the ones to pick up the pieces from this most recent crisis
as Bangladesh is once again set for a quiet spell on the sidelines with the
impending closure on October 12th nearing ever closer.
Even the Chinese market suffered
considerable falls by as much as USD 15/LT LDT this week as non ferrous and
scrap steel prices tumbled (causing many serious concerns over a market that
has proved so stable over the course of the year).
It remains to be seen just how
damaging this latest set of reversals will have on the industry, but such
fluctuations are hardly giving end buyers any comfort to continue the buying at
recent levels. The next week may prove telling in ascertaining the direction in
which the market may be heading.
For week 38 of 2011, GMS demo
rankings for the week are as below:
|
Country
|
Market Sentiment
|
Gen Cargo Prices
|
Tanker Prices
|
|
|
Unstable
|
USD
505/lt ldt
|
USD
525/lt ldt
|
|
|
Weak
|
USD
500/lt ldt
|
USD
520/lt ldt
|
|
|
Steady
|
USD
490/lt ldt
|
USD515/ltldt
|
|
|
Unstable
|
USD
440/lt ldt
|
USD
460/lt ldt
|
Source: Steel Guru (Sourced from GMS Weekly). 27
September 2011
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