With
Christmas and an end to 2012 fast approaching, the overdrive of recent months
appears to be dissipating somewhat as new deals slow, deliveries / beachings
wind down and cash buyers, owners and end buyers alike continue to count their
losses.
A
record 55 vessels were beached in India last month with over 100 for both
October and November combined, and a period of cool down is now perhaps needed
as steel prices and the currency show few material signs of a prompt recovery.
With
that in mind, prices remain firmly rooted below USD 400/LT LDT for standard dry
vessels and slightly above for wet units. Pakistan was echoing the sentiment of
their Indian neighbours with buyers only realty emerging at firm levels for
select units while a whole swathe of average units continuing to seek market
levels remaining unsold.
The
same approach was true of Bangladesh for the right vessels (usually large LDT
with decent specs and tankers strictly gas free for hot works), there were
buyers emerging, but at far more underwhelming levels than had been anticipated
for a market expected to return to form aggressively.
Indeed,
even the recently recovered Chinese market settled back into their comfort zone
this week, dropping back down to the mid-300s/LT LDT on both wet and dry
candidates.
This
all round apathy to acquire will perhaps characterize the end of the year with
still plenty of vessels stocking local yards and a concerted period of
digestion and stability in steel prices / currency needed in order for
aggressive buying to resume.
Whether
the New Year will bring with it a renewed energy and rejuvenated sentiment
remains to be seen, but the markets at this stage could perhaps be forgiven for
appearing a touch weary!
For
week 49 of 2012, GMS demo rankings for the week are as below:
|
Country
|
Market Sentiment
|
GEN CARGO Prices
|
TANKER Prices
|
|
Bangladesh
|
Cautious
|
USD 390/lt ldt
|
USD 420/lt ldt
|
|
Pakistan
|
Cautious
|
USD 3S5/lt ldt
|
USD415/ltldt
|
|
India
|
Weak
|
USD 3S0/lt ldt
|
USD 410/lt ldt
|
|
China
|
Bullish
|
USD 360/lt ldt
|
USD 380/lt ldt
|
Source: steelguru.
13 December 2012
http://www.steelguru.com/international_news/GMS_report_on_ship_breaking_industry_for_WEEK_49_2012/295019.html
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