Owners finally keen to exploit the impressive numbers of the past few months were left facing a precarious market situation as the first signs of recession on price and softening on demand began to take its toll.
Many cash buyers were left anxiously trying to offload tonnage in the hope of not chasing down the market, even though most veterans in the industry had anticipated for a while, that levels would face some form of logical correction around the same time as the onset of the monsoon season in late May or June 2011.
Furthermore, the supply shows no signs of letting up with an increasingly poor charter market showing little sign of improvement. Reefers, capes and all manner of dry vessels (in particular) continue to hit the market seeking the top level, but a fair amount of caution needs now to be urged, due to serious concerns over capacity-Steel prices do remain strong across the board though and there is little doubting the long term future of the industry, but with supply currently outstripping demand, we could perhaps, be due for a quieter few months altogether on the horizon conveniently coinciding with the monsoon season (the worst time for end buyers to cut ships).
It is in this market scenario that we may be faced with an increasing number of deals in jeopardy as numbers on the dry front have already set below the USD 500/LT LDT mark at some point in the next few weeks.
Notwithstanding, for the time being vessels continue to be proposed and deals continue to be concluded, but a certain sense of caution from cash buyers and end buyers alike should temper expectations somewhat. A certain sense of foreboding seems to be the overriding sentiment in today's market and the top dollar should not necessarily be the priority now for many owners seeking immediate sales.
For week 20 of 2011, GMS demo rankings for the week are as below:
Country Market Sentiment GEN CARGO Prices TANKER Prices
India Cautious USD 500/lt ldt USD 525/lt ldt
Bangladesh Weak USD 500/lt ldt USD 525/lt ldt
Pakistan Cautious USD 490/lt ldt USD 5101t ldt
China Steady USD 445/lt ldt USD 465/lt ldt
Source: SteelGuru. Tuesday, 24 May 2011
1 comment:
This is big project. If care is not taken, it might end up in a total failure. But hopes are up. fixing or using the metal as scrap still can serve even the smallest importance but still will prove significant.
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call Bangladesh
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