The market condition in Turkey remains steady as the demand for tonnage from end buyers continues to persist, driven by a dearth of supply. Additionally, the increasing prices offered from the India sub continent markets are making things increasingly competitive for Turkish buyers, who now have to compete with a price differential of more than USD 120 per tonne for similar units.
Consequently, for owners of vessels 4-5000 LDT (and larger), it is more feasible to ballast their units and divert them towards the sub continent. Presently, it is estimated that only about 10% to 20% of the local yards in Aliaga remain busy while the rest remain relatively inactive due to the diminished supply over the last couple of months.
While steel prices have remained stable, the TRY has depreciated slightly as the week ended, trading at TRL 2.09 against the US Dollar. Thus, it remains to be seen how prices for ships will perform going forward.
Source: Steel Guru. 20 May 2014