GMS Week 32 – PUSHING PAST THE PRECIPICE!
Following nigh on USD 150/LDT being knocked off prices, subcontinent markets are currently poised on a much firmer footing this week, especially as the negativity and constant declines of the second quarter begin to be blown away with some of the incredibly aggressive offers on show.
Indeed, local shredded scrap levels in both India and Pakistan have been at yearly highs as prices in both of these markets surge once again. Pakistan is almost USD 30/LDT higher than their closest competitors and some serious speculation has started to emerge from bullish Cash Buyers (especially where the Pakistani market is concerned), so firm has been the pricing in Gadani once again (after over 2 years out of the buying).
However, given Pakistan’s historical propensity to be a short term performer, there is of course a growing concern over just how long this heat will last, especially as End Buyers are being swiftly booked up with the array of market tonnage that is being introduced / committed every week, at ever increasing numbers.
Bangladesh is in danger of being left behind as prices have remained relatively static (despite some mild improvements of late) and yards remain booked with a lot of the large LDT Capand VLOC inventory that was sold earlier this year. As some of this tonnage starts to be digested in Bangladesh (and to a certain extent India, where a massive number of HKC green vessels have been delivered there this year), prices and demand will surely start to return so that they can compete more aggressively with a rampant Pakistani market.
Finally, the Turkish market remains stable this week as plate prices remain steady. However, like the subcontinent markets, the number of COVID cases is reportedly on the rise post Eid holidays. What will the Turkish government do next?
For week 32 of 2020, GMS demo rankings / pricing for the week are as below.