Highlights:
- Sentiment continues to wither
- End buyers nervous to offer
- Prices fall upwards of USD 20/Ton
- Local buyers
Churning Throughout the Crumbles:
Currency crisis, falling steel scrap
and non-ferrous prices, debt fears, and banking delays, have all come together
over the past few weeks to leave the recycling markets across the board in a
heightened state of confusion.
Additionally, while not directly
related, the fears of a further weakening of both US and European markets has
led to an overall decline in market confidence of late. As a result, the
recycling industry has witnessed a drop, upwards of USD 20/LT LDT, with many
end buyers even fearing to present offers on new units, having reservations
that perhaps the market could have come off further in the upcoming days.
Whilst such volatility is not new
to India , to see China and Bangladesh China
Meanwhile, delays in Bangladesh
have become far too much of a worrying reality as several vessels from the last
tide still remain waiting to beach as end buyers have yet to release (or in
some cases even open) respective letters of credit.
As such, the present does appear to
be troubling times then for cash buyers who need to balance the ongoing delays
with the demands and (mainly price) expectations of owners, while at the same
time, tactfully deal with end buyers in a falling market, who are keen to
adjust (downwards) the prices on their incoming inventory. As the tonnage keeps
coming, the challenges keep rising.
For week 39 of 2011, GMS demo
rankings for the week are as below:
|
Country
|
Market Sentiment
|
Gen Cargo Prices
|
Tanker Prices
|
|
|
Unstable
|
USD 500/lt ldt
|
USD 525/lt ldt
|
|
|
Weak
|
USD 500/lt ldt
|
USD 525/lt ldt
|
|
|
Cautious
|
USD 490/lt ldt
|
USD 515/11 ldt
|
|
|
Unstable
|
USD 430/lt ldt
|
USD 450/lt ldt
|
Source: Steel Guru (Sourced from
GMS Weekly). 04 October 2011
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