Signs of life finally started to emerge
from the subcontinent markets this week as prices in both Bangladesh and India
showed marked improvements and cutting permissions on a multitude of tankers
beached in Pakistan are finally set to be issued this coming week. Indeed,
local steel plate prices in India have bounced back nearly USD 30/LDT over the
last10 days, making up for some of the dramatic declines (to the tune of about
USD 50/LDT) witnessed over July and early August. Bangladesh too seems to have
regained some of its appetite following an incredibly sluggish summer / monsoon
period as many of the VLCCs and large LDT tankers delivered during the first
half of the year have been / are in the process of being absorbed, with the
likelihood that a growing appetite to acquire fresh tonnage could emerge
post-Eid holidays.
Activity in Pakistan, Bangladesh, and
Turkey has been muted during the week long Eid holiday period. However, given
that fundamentals are starting to turn positive in the subcontinent markets and
demand too has improved (on the back of a lackluster supply of vessels over the
past few months), it is expected to be a busier and more bullish final quarter
of the year as has traditionally been the case.
Gadani buyers are also starting to wake
up to the stark reality that their well below market offerings are leading them
nowhere. However, following re-inspections of several tankers about a week ago
and the strong likelihood of cutting permissions forthcoming, the near future
could see Gadani Recyclers firming their levels once tonnage starts to be
absorbed.
Finally, both China and Turkey remain
suspended with almost no possibility for the only open Chinese yard to conclude
tonnage. Turkey may stand an opportunity in the weeks ahead, however until
present day levels sink in to become the accepted reality for those looking to
sell their vessels into Turkey, this market is destined to remain on the
sidelines.
For week 34 of 2018, GMS demo rankings / pricing for the week are as
below.
Demo Rank
Location
Sentiment
Dry Bulk
USD/LDT
Containers
USD/LDT
Tankers
USD/LDT
1
Bangladesh
Positive
USD 420/LT
USD 445 / LT
USD 435 / LT
2
India
Positive
USD 415/LT
USD 440/LT
USD 430/LT
3
Pakistan
Weak
USD 410/LT
USD 435/LT
USD 425/LT
4
Turkey
Weak
USD 230 / MT
USD 230/MT
USD 240 / MT
5
China
Weak
USD 160/ LT
USD 180/LT
USD 170 / LT
Source: steel guru. 28 August 2018
No comments:
Post a Comment