GMS Week 34 – TOO MUCH, TOO SOON?
A major correction in Indian steel plate prices by nearly USD 20/LDT this week has led to some jitters in Alang, especially after prices had rocketed up from their lows below USD 300/LDT over the previous months.
Many had certainly been suspecting that it was ‘too much too soon’ (the way prices jumped over recent weeks) and that an inevitable period of either a correction or stability may be seen before perhaps prices push on further in the fourth quarter again.
Steel prices have been at the highest point we have seen so far this year across the sub- continent markets, but external factors such as the ongoing Coronavirus pandemic (India has once again recorded daily high Covid cases this week) and a steady supply of containers (in particular) and HKC green vessels have resulted in some form of resistance on prices creeping back up towards the USD 400s/LDT mark once again.
Pakistan remains the highest placed recycling destination for yet another week, even though a slowdown in supply of market non-green vessels in recent weeks has seen their progress stall somewhat. A majority of the large Capesize bulkers and VLOCs sold during the year so far, have gone to Bangladesh and many local yards still remain stuffed with tonnage, ahead of an anticipated return to form come / during the fourth quarter of the year.