The watchword turned to caution this week as circumstances conspired across the sub continent to present a far more nervy market, as compared to a week or so ago. That filtered through to the sales as well, with very few new market units to report on.
Of course, freight rates remain in a far healthier position, which is seeing far fewer candidates for demolition as the year-end approaches. Volumes this year are set to be down by almost a third from last year, when all time scrap records were breached. Notwithstanding, 2013 itself is set to be another busy year with volumes on par with the previous historical watermark of 1985.
As the New Year looms however, Rupees in both Pakistan and India, failed to impress for another week leading many end buyers to be unwilling to even offer on any new units whilst such volatility persists. Steel prices in India had likewise suffered another blip, only to recover some sort of form by the end of the week.
However, such a rollercoaster of sentiment on a daily basis, is not instilling end buyers with a great deal of confidence at present.
The situation in Bangladesh in the meantime remains gravely precarious, with elections set for January 5th and the opposition party continuing to stir up passions locally, many buyers are not focused on the buying as the immediate future still remains uncertain and of concern.
Finally, China was a mere spectator to activities elsewhere as rates showed few signs of improving and even vessels finishing discharge in the area were earmarked as cash buyer ‘as is’ tonnage for a final voyage over to the sub-continent (as was the case with the one market sale of this week).
Source: steel guru. 10 December 2013