With summer months and the Olympic Games in London in full swing, the activity in the demo markets continued unabated with a number of sales concluded, and even more candidates under consideration.
Indeed, the industry witnessed some considerable cash buyer speculation at play this week, which saw several deals fixed by today's market at unthinkable potentially unachievable levels.
The fact is that the Indian market remains extremely volatile, with both currency and scrap steel prices fluctuating by the day. The Bangladeshi market is swiftly reaching overload with a number of high profile and high priced deals concluded there recently.
Pakistan has shown its propensity to pick up the slack on occasions, but more often than not, Gadani buyers have tended to follow the sentiment and pricing of their Indian sub continent rivals rather than lead the market from the front.
Lastly, China endured another disappointing week with levels well down and almost some USD 100/LT LDT off the pace of the competition in the Indian sub continent.
With the Indian court order now passed, permitting vessels adhering to the Basel convention to be imported once again, expect the focus to firmly shift back onto this market with capacity from the previous months of inactivity perhaps finally set to count.
Nevertheless, whether the current speculative numbers wall sustain in the face of falling capacity in competing markets remains to be seen, especially in the face of continued volatility of all the key fundamentals and the ever-incessant flow of tonnage.
Source: Steel Guru. 8 August 2012http://www.steelguru.com/international_news/GMS_report_on_ship_breaking_industry_for_WEEK_31_2012/277476.html