A long overdue yet (somewhat) unexpected spike in
Bangladesh ignited the international ship recycling markets this week. Amidst
the ongoing political instability and continuous strikes in addition to surging
steel prices that saw mill owners decide to stock up on their inventory,
subsequently resulted in ship prices and demand jumping dramatically over the
course of the week.
A number of interesting sales were concluded (both market
and private) to satisfy this renewed Bangladeshi hunger and it will be
interesting to see if this streak maintains itself until the end of the year,
or is it merely a short lived surge.
On the larger units, both India and Pakistan were simply
unable to compete there was even speculation that of some of the recent VLCC
sales (all gas free for man entry only), the hot works cleaning costs would be
seriously considered by cash buyers looking to exploit the current surge from
Chittagong.
Meanwhile, the Indian market suffered another turbulent week
on the currency, just as some sort of stability had started to emerge over the
past few months! The rupee spent much of the week trading into the 63s against
the US Dollar, having previously settled around Rs. 61 for a good period of
time.
The Pakistan Rupee was not faring much better either and
fears of the nightmare scenario seen in the third quarter of this year started
to resurface, leaving offers on new units virtually nonexistent.
The Chinese market failed to get going as well for another
week - several larger LDT units thus escaped their clutches with cash buyer 'as
is' prices pocketing owners a tidy premium over local levels in either North /
South China.
For week 46 of 2013, GMS demo rankings for the week are as
below:
|
Country
|
Market Sentiment
|
GEN CARGO Prices
|
TANKER Prices
|
|
Bangladesh
|
Bullish
|
USD 400/lt ldt
|
USD 430/lt ldt
|
|
India
|
Cautious
|
USD 395/lt ldt
|
USD 425/lt ldt
|
|
Pakistan
|
Cautious
|
USD 390/lt ldt
|
USD 420/lt ldt
|
|
China
|
Weak
|
USD 330/lt ldt
|
USD 340/lt ldt
|
Source: steel guru. 19 November 2013
No comments:
Post a Comment