The steel
prices in Aliaga have further depreciated this week, evidencing a continuing
fall in the local market.
At the
beginning of September, the local steel mills were purchasing steel from ship
recycling facilities at levels close to USD 390 per MT. Last week, this rate
had dropped to USD 370 per MT, which translates to an overall fall of USD 20
per MT for the first month of the final quarter of the year.
With such a
negative fluctuation in local steel prices, Turkish breakers are uncertain as
to whether they should continue putting efforts with aggressive speculation in
order to acquire market tonnage and keep their facilities operating, or if they
should just follow the negative trend of the prices offered by the rolling
mills.
However, the
latter does not appear to be a realistic solution for the Turkish buyers since
they are already unable to prevent tonnage from being repositioned towards the
Indian sub-continent shores, where prices remain much firm.
As such, the
shores of Aliaga remain capable of attracting only small LDT units as the lack
of large LDT quality tonnage for local yards persists.
Source: steel guru. 30 September 2014
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