GMS Week 22 – OUT FOR THE COUNT!
The market remains on an overall subdued footing, despite the recent surge in optimism in India, brought on by last week’s election victory of Prime Minister Mr. Narendra Modi.
Bangladesh essentially remains out for the count with the budget due on June 13th (in which new duties / taxes on the steel sector are expected to be introduced) and a week long Eid holiday, which are set to begin from early next week, signaling the end of the Holy month of Ramadan.
Pakistan remains desperately positioned below the USD 400/LDT mark for most units and there appears to be little hope of any fresh arrivals here any time soon, especially after this most recent currency depreciation and an upcoming budget on June 11th.
New candidates appear to have dried up for the time being, with many owners unwilling to dip into the market at these far lower levels. In fact, most are willing to wait and see the results of the upcoming budgets and are hoping for a post-Eid optimism to return to the markets.
The reality is however that most yards in Bangladesh remain stuffed with tonnage and this is hardly surprising given that most Panamax containers, Capesize bulkers, VLOCs and other large LDT market, non-green vessels have ended up in Chattogram this year. Those end Buyers that are open, unfortunately do not have L/C limits (an increasing issue across subcontinent markets, due to increasingly tougher banking compliance requirements) and it will therefore take a period of significant digestion over these summer / monsoon months before the previously bullish Bangladeshi market returns to form.
For week 22 of 2019, GMS demo rankings / pricing for the week are as below.Read more
Source: GMS Weekly