While September
was certainly not a positive month for Turkish buyers, the first week of
October further surprised the domestic ship-recycling industry with a
significant drop in local steel plate prices and consequently, the prices for
ships offered by local buyers.
The market thus
continued its downwards slide, resulting in several buyers offering in the low
USD 300s per tonne down from the mid high USD 300s, which persisted during the
months of August and September respectively.
The primary
reason for such a huge depreciation is no other than the depreciating Turkish
Lira (against the US Dollar) and the consequent fall in local steel plate
prices.
Meanwhile, the
demand from Turkish buyers continues to persist as less than a handful of small
vessels continue to be delivered on a weekly basis. What remains to be seen is
how the Turkish Lira will behave with the changing political realm.
For now, the
second week of October is expected to be quite as the industry will be
celebrating the Eid Holidays.
Source: steel guru. 07 Oct 2014
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