As the local markets in the Indian sub continent continued their descent to coincide with monsoon and an enormous oversupply of vessels, the sales board showed a marked sign of slowdown. Only a few market sales registered in the clearest sign yet that the pendulum has swung back to local buyers cherry picking units and dictating the prices offered rather than just absorbing whatever was thrown their way.
Several reports in the past few weeks have noted the breaching of the record for the number of capes scrapped in the first six months of the year. The previous record had reportedly been 24 back in 1996, with the number exceeding 40 already this year - some claiming perhaps as many as 50 have already been scrapped. This has still however been outweighed by the number of new buildings flooding onto the market and it is a surefire tiling that if rates see no signs of improving, we wonder just how high this record will go.
Of course, it all depends on whether the Bangladeshi market will obtain clearance to remain open beyond the current deadline of 7th July and mat local buyers across the Indian sub continent can get their finances in order to satisfy the ongoing over supply.
For the best part of the year, prices across the board have been hugely impressive and steel prices have so far shown no signs of retreating. There is every expectation therefore that upon the digestion of the current influx of vessels and once the monsoon months have passed, a resumption of the hectic activity that has so far beset this year, is likely to continue.
For week 23 of 2011, GMS demo rankings for the week are as below:
| Country | Market Sentiment | GEN CARGO Prices | TANKER Prices |
| | Weak | USD 500/lt ldt | USD 525/lt ldt |
| | Weak | USD 485/lt ldt | USD 515/lt ldt |
| | Cautious | USD 480/lt ldt | USD 500/lt ldt |
| | Steady | USD 440/lt ldt | USD 460/lt ldt |
Source: Steel Guru (Sourced from GMS Weekly). Tuesday, 14 June 2011
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