It was a week of interesting activity on all fronts with budgets
announced, new taxes implemented, and instability undermining fundamentals
across the Indian sub-continent. China too faced challenges as local market
fluctuations coupled with chronic oversupply left the previously bullish end
buyers in a state of flux. There is much to discuss men, as industry plavers
convene once again in Dubai for the annual Tradewinds recycling conference and the
turbulent events of the year so far are likely to be a hot topic of debate.
Central to sentiment across the sub-continent is the largest recycling
destination, India, where this week, the much-anticipated budget was announced.
As tends to be the case, there were few overall material changes to affect the
recycling industry and it remains business as usual there. This had seen some
renewed optimism return to the buying before the currency once again took a
turn for the worse and depreciated back towards Rs. 55 to the U.S. Dollar. As
it remains, if it's not local steel plate prices causing suffering on the
Indian shorefront, the currency is sure to play its role to the despair of
local buyers!
It was in Pakistan however, where the biggest shock for the week came
with news of a potential 5% tax hike on new vessels to be imported for
recycling. This news has come about quite suddenly so Gadani buyers across the
board have decided to put a halt on buying activities for the time being until
the fine print has been read and all is fully understood regarding the
potential new payments / taxes. Bangladesh has been rocked by riots, strikes,
and unfortunate deaths after the announcement early in the week that an
Islamist party leader was sentenced to death. The whole country has ground to a
virtual standstill with police and rioters reportedly clashing.
China experienced some worrying signs of decline as many end buyers chose
simply not to offer following the recent binge on units there and sentiment
stuttered for the first time this year. Finallv, as Turkev continues its
encouraging start to the year, a few more sales come to light as the MPP SAKALA
(6,120 LDT) fetched region USD 304/LT LDT. Two approximately 7 KLDT RoRos were
also sold on PNC terms into Turkey for region USD 325/LT LDT.
For week 09 of 2013, GMS demo rankings for the week are as below:
|
Country
|
Market Sentiment
|
GEN CARGO Prices
|
TANKER Prices
|
|
India
|
Cautious
|
USD 400/ltldt
|
USD 425/ltldt
|
|
Bangladesh
|
Cautious
|
USD 390/ltldt
|
USD 420/ltldt
|
|
Pakistan
|
Weak
|
USD 385/ltldt
|
USD 420/ltldt
|
|
China
|
Cautious
|
USD 375/ltldt
|
USD 400/ltldt
|
Source: steelguru. 5 March 2013
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