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