Demand and pricing appear to be returning to expected levels slowly but surely in Chittagong and it was no surprise to see several more sales concluded as a result.
However, it is still a struggle for end buyers to shift inventory from their plots (from vessels purchased much earlier in the year) as poor weather and flooding continues to beset the country and this has hampered new construction and development projects over the of the prevailing monsoon, which has, in turn, seen a slowdown in demand for scrap steel.
Steel prices have declined slightly this week by about USD 5 to USD 7 per LDT (havin improved by over USD 20 per LDT over the previous few weeks), but the currency continues to remain steady.
On the sales front, the two sales that were reported saw two smaller bulkers positioned in the East and discharging in the area sold for decent prices.
The Taiwanese controlled GUI SHUN (4,906 LDT) and the Turkish owned AK BROTHER (6,660 LDT) were sold for USD 465 per LT LDT and 496 per LT LDT respectively.
The older age (1979 built) and smaller LDT (meaning much fewer buyers to acquire in a market favoring larger LDT units) saw the GUI SHUN achieve the significantly lower price on show.
Source: steel guru. 23 September 2014