GMS Week 37 – TRICKLE OF TONNAGE!

Despite the fourth quarter of the year being well under way, it has been surprising to see the Indian subcontinent markets still stuck in the ongoing doldrums. As we reach the middle of September, markets have not been this depressed for several years (at least) and the pervading negativity seems to show few signs of abating.

Bangladeshi plots remain stocked after a heavy first half year of buying and a longer rainy / monsoon season has seen minimal product shift from domestic yards over the summer months. With local steel plate prices having maintained overall previous levels, most are expecting a return to some sort of form in the weeks / months ahead, but it seems to be a process slower than what industry players were previously anticipating.

There is also the lingering hope that the BSBA will eventually overturn the recent increase in VAT that was imposed during the June 13th budget and that the recent influx of cheap Chinese billets also slows a little, especially given a cooling in the trade war scenario between China and the U.S.

On the other side, India remains highly inert and very few end Buyers are willing to discuss fresh units at this time – such has the ferocity of recent falls been in Alang. Steel prices have also crashed by about USD 75/LDT (with further declines this week) whilst the currency has depreciated by about 2%, from Rs. 69 to the U.S. Dollar to well above Rs. 72 in recent times.

There has seemingly been a firming interest in Pakistan to acquire new units over the last few months, but prices and confidence remain far too tentative and sluggish, given well over a year of inactivity on Gadani shores and as damaging cheap Iranian billets continue to flood the market for much of this year.

For week 37 of 2019, GMS demo rankings / pricing for the week are as below.

Source: GMS Weekly