Interestingly
this week, strikes in both India and Bangladesh saw cash buyer (and end buyer)
speculation re-enter the market once again. The political unrest in Bangladesh
and the truckers strike in India have led certain parties to start gambling on
an increase in commodity prices, something that usually seems to occur in times
of crisis.
Currencies in both
Pakistan and India also began to settle (though daily variations continue to
leave end buyer nerves frayed to an extent) and appeared to present an overall
rosier picture in the Indian sub-continent recycling markets this week.
A glut of heavy LDT
container vessels was also concluded into India this week as this particular
sector displayed few signs of satisfying owners on the hire rates. The winter
period however, has brought with it, an improvement in rates for many other
types of vessels something that may see supply slow going into the New Year.
The Chinese government
announced this week, the much-anticipated subsidies due to owners of Chinese
flagged ships who have scrapped locally this year. The generous premiums will
see mostly the largest state run benefactors obtain prices well above what they
may have even seen, had they scrapped their vessels in the sub-continent.
This is a significant
development and may explain why Chinese yards have been so subdued for the last
few quarters of this year. Local yards have seen a steady and decent supply of
vessels from the likes of Cosco and China Shipping, which has led to a reduced
appetite / overall capacity. There is also a general lack of interest to
compete on some of the costlier international tonnage, particularly when cash
buyers often look at buying ‘as is where is’ for a final voyage across to the
sub-continent.
Source: steel
guru. 17 December 2013
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