Some extraordinary market sales this week gave the market a
new complexion going into week 40 of the year. For the most part, it seems as
though (certain) cash buyers are still willing to speculate on an inevitable
(and spectacular) market turnaround.
Whilst there have certainly been some improvements in
particular in India of late it would be irresponsible to suggest that tankers
and containers are trading locally in the mid 400s/LT LDT with bulkers at USD
420 to USD 425/LT LDT range. The reality in fact is that prices on the ground
remain at least USD 25/LT LDT below.
The sales from this week do not seem to connect to die local
activity on the ground - and unless one end buyer is offering way ahead of the
pack (a rare scenario indeed), then this has to be put down to the respective
cash buyer gambling on a forward moving market.
Notwithstanding, India lias continued its good form of late
with another positive week on the currency and local steel plate prices. A
greater demand is emerging for all types of tonnage as the confidence starts to
flow back into a market that was decimated by the collapsing currency during
the third quarter of the year.
The recovery on steel plate prices in Bangladesh too lias
seen prices for ships climb -although not high enough to start competing with
India or satisfying cash buyer expectations on their existing inventories.
Pakistan was left marooned some way behind both of its
sub-continent rivals, with the Pakistani Rupee still causing some concern
locally. For that reason, Gadani buyers have missed much of the recent tonnage
and will need to rethink their price ideas, if they are to get back in on the
action.
China remained off for their National October holidavs this
week, resulting in little meaningful activity there, whilst Turkey continued
their recent revival with offers ranging from low to mid 300s/LT LDT seen on a
variety of tonnage.
For week 40 of 2013, GMS demo rankings for the week are as
below:
|
Country
|
GEN CARGO Prices
|
TANKER Prices
|
|
India
|
USD 395/lt ldt
|
USD 425/lt ldt
|
|
Bangladesh
|
USD 390/lt ldt
|
USD 420/lt ldt
|
|
Pakistan
|
USD 385/lt ldt
|
USD 415/lt ldt
|
|
China
|
USD 350/lt ldt
|
USD 365/lt ldt
|
Source: steel guru. 8
October 2013
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