With Indian sub-continent markets tiring on for another week, it became a three-way battle for tonnage even for those vessels positioned in the East as China continued to woefully lag behind on numbers. India once again secured the majority of the market tonnage due to their sheer capacity to take on all types and sizes of vessels.
In fact, even the recently re-opened Calcutta market managed to taste their first share of market tonnage this week, with the purchase of a smaller tween.
While the competition for vessels has always been fierce, of late, it is becoming increasingly common to see deals go right down to the wire, often being decided by a matter of cents and how much the broker involved is willing to sacrifice, just to get the deal done.
There is a strong interest from buyers in both Pakistan and Bangladesh to stock their yards before the upcoming budgets mid-May and for prompt candidates, time is starting to run out. This could be one reason why cash buyers have been speculating so heavily recently, going that extra mile just to secure pre-budget tonnage in the hopes that, especially on the big ones, end buyers will jump up to expected levels to fill their plots.
As pessimism has prevailed every year, there are tears that budgets will bring with them renewed taxes, which could bring increased import duties onto the shoulders of end buyers.
However, more often than not, the budgets pass by without incidence and levels maintain. There is though, the very real feeling that levels may soften after these June dates, with an influx of tonnage expected due to the persistent poor showing of China and the upcoming monsoon season across the sub-continent.
For week 16 of 2013, GMS demo rankings for the week are as below:
|Country||Market Sentiment||Gen cargo price||Tanker price|
|Pakistan||Bullish||USD 415/lt ldt||USD 445/lt ldt|
|India||Bullish||USD 410/lt ldt||USD 440/lt ldt|
|Bangladesh||Bullish||USD 405/lt ldt||USD 430/lt ldt|
|China||Weak||USD 360/lt ldt||USD 370/lt ldt|
Source: Steel Guru. 24 April 2013