GMS Week 19 – DECLINE AND FALL!
The first signs of decline have started to set in on the industry, ahead of the traditionally quieter monsoon season that’s just around the corner.
For some time now, there has been the lingering anticipation that the Bangladeshi market is due for a period on the sidelines, as a result of over extending themselves on the multitude of high-priced vessels sold for recycling so far this year. The Bangladeshi budget is also due on June 13th, 2019 with rumors around new duties / taxes on the domestic steel sector making the rounds, which in turn has led to increased nerves and reduced / minimal offerings on any working vessels that may arrive after or close to this date.
On the other side, the Indian market endured another harrowing week with both local steel plate prices and the Indian Rupee registering noteworthy declines over the course of the week, subsequently carving out a new reality on pricing for vessels being negotiated.
Pakistani Recyclers have virtually remained out of the buying, although they may be pleased to see that declining offerings from competing neighbors may inadvertently drop them back into the game, especially if the current trend persists much longer.
On the global end, the recently resurfaced US – China tariff squabbles have also done little to reduce Recycler (especially Indian) anxieties as stock markets endured another turbulent week as well. All of this leaves the Indian subcontinent markets in a precarious position, heading into the traditionally quieter monsoon / summer months.
For week 19 of 2019, GMS demo rankings / pricing for the week are as below.Read more
Source: GMS Weekly