Despite the Bangladeshi market formally opening last week, most looking to sell to the local market expected a resurging of prices and demand after an absentee hiatus. Unfortunately, neither has happened so far. In fact, prices from Bangladesh started to retreat causing many owners to sail from Chinese ports, skipping Bangladesh altogether and heading further West for the shores of WC India or Pakistan range.
On the supply side, the market remains rife with tonnage. As owners and brokers continue to push the envelope in order to bang out the better deal for their aging beauties, most end buyers remain aware of the plethora of offerings in the market and decidedly maneuver towards vessels more within their (price) reach. As such, in the absence of a juicy piece of tonnage, most sales are at existing levels.
Demand too prevails, but as stated above, most end users are not looking to break records off the bat. Nowhere is that decidedly more evident than in Bangladesh, where ship recyclers are happy to walk away from exciting tonnage. Additionally, as the existing gap in levels between India and China lies at about $60-S70 per tonne, the Chinese too have been watching tonnage slip away from their fingers. Only Pakistan and (especially) India remain the voracious negotiators of ongoing deals and nearly all of this week's deals are headed for WC India and Pakistan range.
Overall, with a fortnight of April now behind us, the recycling sectors continue to trudge on with no impactful change other than wet and (majority of) dry tonnage now fetching above the USD 5XX per tonne mark.
For week 15 of 2011, GMS demo rankings for the week are as below:
Source: Steel Guru (Sourced from GMS Weekly). 18 April 2012
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