Ø Chittagong Impetus needed
Ø Stagnation sets in
Ø Wider issues affect market
Ø Collapse not on cards
Riders of the Storm:
A lot will be resting on Chittagong shoulders when the local market
there does eventually reopen in the coming weeks. Inevitably and as
anticipated, the case was not heard on November 13th 2011 in Bangladesh ,
though many had hoped it would have.
Overall, a certain stagnation seems to have set
into the industry across the board with nothing able to arrest the alarming
slides that have beset the markets for as long as 6 weeks now. Indeed, even a
rupee rebound against the US dollar tailed to improve prices and overall
sentiment. Rather, many in WC India seem to be focusing on external factors,
such as the fall in US scrap steel prices, China 's
continuing slide in demo levels and the continued absence of their major
competitor, Bangladesh ,
from the bidding desks.
Other wider issues such as the Eurozone debt crisis
and the Greek default coupled with international stock market volatility and
worldwide recession, all appear to have filtered through to the local recycling
markets. While the Cash Buyers have adjusted their offers and numbers
accordingly, they have done so without really looking at the relative health of
their own industry and the prevailing local scrap steel prices.
Notwithstanding the ongoing deals with Cash Buyers,
there are few willing end buyers (especially in India) who are even hesitant to
put forward any indications at this stage as genuine concerns on the health of
the industry and the direction of prices remains prevalent. Though on macro
end, it must not be forgotten that these are still historically strong numbers
on the buying front and a 2008 style collapse is not likely to occur.
Meanwhile, though the present continues to yield
testing times for cash buyers and owners alike, who have concluded deals in the
face of a falling market we do hope that that a return of Bangladesh to compete
(in the near future) brings back some sort of stability and (hopefully) an
improvement in prices, injecting a much needed boost to the anemic market.
For week 45 of 2011, GMS demo rankings for the week
are as below:
Country
|
Market
Sentiment
|
Gen
Cargo Prices
|
Tanker
Prices
|
|
Cautious
|
USD
475/lt ldt
|
USD
505/lt ldt
|
|
Weak
|
USD
470/lt ldt
|
USD
500/lt ldt
|
|
Weak
|
USD
350/lt ldt
|
USD
375/lt ldt
|
|
Weak
|
N/A
|
N/A
|
Source: Hellenic Shipping News (Sourced
from GMS Weekly). 16 November 2011
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