As one market fell, another rose, and the balance of power shifted from West to East in the power play between the competing markets. Almost all markets continued to secure tonnage (both private and market) in the clearest demonstration yet, of the importance of geographical locations. Vessels positioned in the Far East saw levels justifiably high enough to set sail for China and away from the sub continent, while those on the way to WC India Pakistan suddenly saw a firming Bangladesh alternative, as the week ended.
All of this bodes well for the continued influx of tonnage particularly those capsize units expected to make their appearance over the coming weeks. Both Bangladesh and China are adept buyers of the larger units on offer, compared with Pakistan (where many of the open buyers have already satiated their appetites) and India (where a far more diverse buying approach is in place and fewer buyers of the largest units exist).
It was difficult to get any sense out of the Indian market this week due to the impending end of the financial year. This coincided with a dramatic fall in the steel prices (the single largest in the past 4 months) and a rupee that continued to struggle against the dollar. Consequently, we saw prices falling from the market titans as sales struggled to complete.
Bangladeshi rates in contrast showed signs of finning with a number of enquiries returning to the market from end-buyers claiming to have the required finance in place. The new formalities and increased waiting time (due to further necessary paperwork and inspections) were being well timed by cash buyers, end buyers and officials alike. Expect to see one or two more market sales concluded into Bangladesh in the coming weeks as owners and cash buyers look to exploit the current sentiment and test the regulations once again.
China too saw numbers pick tip and bid strongly on a number of vessels on the market, a firming Bangladesh may not necessarily be the best tiling for them, in terms of securing units, but there is currently a feeling throughout the industry that the number of candidates around is enough to satisfy even the most hungry of buyers.
For week 13 of 2012, GMS demo rankings for the week are as below:
|Country||Market Sentiment||GEN CARGO Prices||TANKER Prices|
|Bangladesh||Weak||USD455/lt ldt||USD 485/lt ldt|
|India||Weak||USD455/lt ldt||USD 485/lt ldt|
|Pakistan||Weak||USD450/lt ldt||USD 480/lt ldt|
|China||Bullish||USD420/lt ldt||USD 435/lt ldt|
Source: Steel Guru. (Sourced from GMS Weekly). 3 April 2012