The market showed few signs of shifting
this week as several vessel purchased at speculative numbers were resold
locally at levels indicating remarkable losses being borne by the players at
hand.
The Polembros controlled PARROS WARRIOR
was purchased last week at USD 536 per LT LDT and after no takers reportedly
even emerged at USD 520 per tonne or USD 518 per tonne the vessel was committed
to end buyers at 515 per LT LDT.
This reflects the growing speculative
tendency of cash buyers to pay over and above what the market may be offering
on the day of the deal, in the anticipation that come delivery the market would
have potentially finned up to justify the high price and turn the deal
profitable.
The trends for the year seem to support
that, but there are many now who feel we have reached the tipping point and
that the market has no further room for improvement based on local demand, scrap
steel and nonferrous prices, coupled with struggling currencies and a faltering
world economies.
A lack of sales for the week was
testament to stagnant movement locally and the unwillingness of Gadani buyers
to jump and match up to cash buyer expectations.
Source: Steel Guru (Sourced from GMS Weekly). 19 October 2011
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