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GMS Week 38 – GLOOM STARTING TO LIFT?!

As the fourth quarter gets into full swing, a degree of stability finally seems to be emerging in the subcontinent markets as a couple of sales have reportedly registered at firming numbers this week, leaving Cash Buyers and Recyclers cautiously optimistic.

Many had been expecting some sort of return to form come September, but constant declines over the summer / monsoon months across all subcontinent locations (and even Turkey of late) has delayed this by at least a month or so.

Given the drastic declines noted over the recent past, there is little hope that levels will return to previous highs in the mid USD 400s/LDT (and higher). However, if the markets improve just enough to make up some of the previous heavy losses of about USD 70/LDT, it would certainly be an appreciable start.

Bangladesh has initiated the early running with the recent capture of a VLCC and several tankers, nearly grazing the USD 400/LDT mark once again and this in turn may stimulate competing markets in both Pakistan and India (both desperately short on pricing and tonnage) to firm up and compete once again on any potential tonnage.

Problems still persist of course, with steel plate prices having collapsed spectacularly in India and cheap Chinese billets being offered into both Pakistan (from Iran) and Bangladesh (from China).

Even Turkey has not been spared from the rotting decline affecting subcontinent recycling destinations with collapsing plate prices of their own that have fallen by about USD 50/Ton over the last few weeks.

For week 38 of 2019, GMS demo rankings / pricing for the week are as below.

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Source: GMS Weekly

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