With summer, monsoon months and Ramadan in
full swing, the Indian sub-continent recycling markets were not a pretty
picture of health and vibrancy. Steel prices were shattered not only in India
this week, but also came off in Bangladesh whilst appetite to acquire new units
largely waned.
Firstly, in India, where there load been
some hope on the horizon that the worst had been seen in terms of currency
depreciation as government intervention last week, more or less, put a halt to
the sliding Rupee.
However, a 10 day consecutive slide in
local steel plate price saw over USD 20/LT LDT knocked off vessel prices as
most end buyers retreated from the negotiating table to wait and watch the
developments in this coming week.
Understandably, most end buyers were
yearning for some stability to return to the markets before committing on new
tonnage, but this is leaving cash buyers and some owners with tonnage in an
understandably precarious and awkward position.
Whilst India dealt with the fallout from
this most recent steel price crisis, so did Pakistan and Bangladesh suffer with
dismal demand and a fall on the local steel plate prices, affecting prices for
ships and respective demand locally.
With these most recent market falls
filtering through to international ship pricing, previously reluctant owners
may decide to withdraw vessels altogether, either choosing to lay them up or
find further voyages, before selling for improved rates in the Q4 of this year.
The one positive for the week concerned
improving markets in both China and Turkey. Those vessels positioned in either
the Far East or Med regions may no longer be analyzing voyage costs, as the
pricing gap with the sub-continent markets continues to narrow further.
For week 30 of 2013, GMS demo rankings for
the week are as below:
Country
|
Market Sentiment
|
GEN CARGO Prices
|
TANKER prices
|
Bangladesh
|
Weak
|
USD
375/lt ldt
|
USD
410/lt ldt
|
India
|
Weak
|
USD
375/lt ldt
|
USD
410/lt ldt
|
Pakistan
|
Weak
|
USD
375/lt ldt
|
USD
410/lt ldt
|
China
|
Weak
|
USD
325/lt ldt
|
USD
340/lt ldt
|
Source:
steel guru. 30 July 2013
http://www.steelguru.com/international_news/GMS_weekly_report_on_ship_breaking_industry_for_WEEK_30/320491.html
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