The sticky monsoon months look set to continue for the time being, with levels across the sub-continent softening further tills week and several cash buyers in panic mode with unsold and expensive inventories vet to offload.
Prices do not look like they would be improving in the near future either, as both the currency and local steel plate prices have been the chief perpetrators in India as competing markets in Pakistan and Bangladesh have largely followed suit with that negativity.
On the other hand, Turkey and China have made some gains this week with scrap steel prices improving by some USD 10-15/LT LDT at each location. This is often a good indicator for improvements further down the line in the sub-continent markets.
Even if the Indian Rupee had made some marginal gains against the dollar over the course of the week, to finish trading back down at INR 59.5 to the USD, local steel prices conspired to bring about drastic falls and further dampen the local mood. Sentiment has therefore been altogether shot to pieces in India over the past few months, and being the biggest and most established ship recycling market in the world, this has sent Shockwaves through both Pakistan and Bangladesh who themselves are suffering jitters as a result.
Getting any sort of sensible offers out of end buyers is proving particularly difficult with most not confident enough to talk any numbers, rather, content to wait and watch the market moves before hopefully seeing some sort of stability return.
For week 28 of 2013, GMS demo rankings for the week are as below:
GEN CARGO Prices
USD 415/lt ldt
USD 415/lt ldt
USD 330/lt ldt
Source: steel guru. 16 July 2013