With plenty of
candidates of all types and sizes still in the market, it was surprising to see
only one market sale concluded this week - into Bangladesh. Diwali holidays in
India have slowed the pace somewhat, but cash buyers have still been alive to
possibilities and have taken positions on units where necessary.
It should therefore be a
busy last few months to the year, with an uninterrupted run in all the major
ship-recycling destinations up until Christmas. Many vessels are also approaching
surveys in the New Year and with charter rates (on the whole) largely not
justifying the costs to pass, the third quarter of (relative) inactivity may
soon be forgotten.
Demand and capacity into
all destinations remains strong, but fundamentals continue to fluctuate on a
dailv basis. With the extreme volatility so far seen, end buyers can easily
become nervous from one day to the next and (swiftly) withdraw previous offers.
Currencies in Pakistan
and India have been the major cause for concern throughout this year with the
Indian Rupee finallv making a recovery during October and Pakistan starting to
level off a touch. Yet fears persist in both countries of another depreciation
of currencies. Coupled with the ever-volatile steel prices, local buyers have
had a frayed last few quarters.
Bangladesh steel prices
have recovered to such a degree that some impressive levels are once again
emerging albeit for the right units and a local buyer is interested to bid.
Where they are missing out however, is on their favored VLCCs, which are
largely being delivered gas free for man entry only (thus ruling them out with
the Chittagong hot works requirements).
Despite Chinese levels
remaining subdued, the knowledge that yards will need to be filled to satisfy
quotas and renew licenses may see levels make something of a recovery towards
the end of this year.
|
Country
|
Market Sentiment
|
GEN CARGO Prices
|
TANKER Prices
|
|
India
|
Cautious
|
USD 390/lt ldt
|
USD 420/lt ldt
|
|
Bangladesh
|
Cautious
|
USD 385/lt ldt
|
USD 420/lt ldt
|
|
Pakistan
|
Cautious
|
USD 385/lt ldt
|
USD 420/lt ldt
|
|
China
|
Weak
|
USD 330/lt ldt
|
USD 340/lt ldt
|
Source:
steel guru. 13 November 2013
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