The struggle to locate end buyers for any type of vessels in any recycling market, continued into this week despite a few signs of stability emerging from India as evidenced by some improvements in steel prices.
However, the Indian Rupee, which remained the real cause for concern after reaching historic lows last week and forcing virtually all local end buyers to halt buying activities, remains at suppressed levels against the US Dollar.
Meanwhile, as remains evident, a crippling combination of factors has conspired in recent weeks to present an overall bleak outlook for all recycling markets, with the exception perhaps of Turkey where prices appear to be nearly on par with China.
Mercifully, the fall in price seems to have led to a slowdown in the supply of candidates with many owners unimpressed by the swift and dramatic falls over the past few weeks and subsequently withdrawing their units from the market as levels continued to slip.
Whether levels will pick up post monsoon remains an optimistic/hopeful outlook and a steady supply rather than a deluge of vessels all at one time, could help prices to stay in the (historically impressive) mid 400s range for all markets.
Arrivals into the Pakistan, India and China markets have all slowed over the past few weeks with only Bangladesh being inundated with arriving vessels. With budgets and monsoon months also just around the corner, it may be just what is needed to build up the confidence and aggression to buy once again.
Of course many cash buyers still hold 'as is' tonnage and continue to struggle with delivered vessels with end buyers looking to pull the usual catalogue of stunts in order to justify their high priced purchases and knock money off.
For week 21 of 2012, GMS demo rankings for the week are as below:
|Country||Market Sentiment||GEN Cargo Prices||Tanker Prices|
|Bangladesh||Weak||USD 435/lt ldt||USD 455/lt ldt|
|Pakistan||Weak||USD 420/lt ldt||USD 440/lt ldt|
|India||Weak||USD 410/lt ldt||USD 440/lt ldt|
|China||Weak||USD 380/lt ldt||USD 400/lt ldt|
Source: Steel Guru. 29 May 2012http://www.steelguru.com/international_news/GMS_report_on_ship_breaking_industry_for_WEEK_21_2012/265999.html