Following the conclusion of Eid holidays,
unlike Turkey, in Pakistan and Bangladesh this week, prices and demand started
to improve with some frisky numbers being promptly put forth by bullish Cash
Buyers who are already confident of a market returning to form. At long last,
the issuance of cutting permissions on wet tonnage in Pakistan increases resale
options for tanker owners and provides competition to the somewhat isolated
Bangladeshi (and to a small extent, Indian) market for large LDT / VLCC sized
units. There are however, a number of large LDT tankers / VLCCs still blocking
space at recycling yards in Pakistan and it will expectedly take several more
months (after cutting gets under way) for recycled product to shift from yards
and demand to fully return.
Meanwhile, several VLCCs have also been
beached in Bangladesh over recent tides and large Dollar value L/C capabilities
for a growing number of local Recyclers is getting notoriously tougher, making
the overall acquisition of large LDT vessels a particularly precarious
proposition for Cash Buyers at present.
India too has endured some worrying moments on
local steel plate prices over the past week, but has overall gained almost USD
10/LDT, after the recent volatility witnessed during July and early August.
Finally, both Turkey and (especially) China
remain on the sidelines as they remain woefully off the subcontinent offerings,
as nearly no news of vessels heading to Turkey has been forthcoming this week,
with China almost hitting a stage of absolute irrelevance. As we head into
September and subcontinent activity starts to ramp up again, there still
remains a pinching shortage of supply. As such, we can expect to see some
heated competition over some of the premium vessels that will come available
during the fourth quarter of the year.
For week 35 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
|
Positive
|
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. 4 August 2018
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