GMS Week 49 – TALKING DOWN!
Over the recent weeks, following a sharp decline in Indian local steel plate prices (in excess of USD 60/LDT) has expectantly resulted in a sub-continent recycling sector that has been rocked and left many Recyclers spooked and opting to wait and monitor developments, rather than negotiate / commit on fresh tonnage.
However, the acute shortage of vessels continues and there is really very little working firm for Cash Buyers and Recyclers alike, to even offer on at the moment.
As such, this pause in activity may somewhat be artificial and the impact on prices may be limited in real terms, especially once we have actual workable candidates. Such was the case with the one market sale of the week, a Suezmax tanker that still managed to fetch a decent USD 625/LT LDT basis an ‘as is’ Batam delivery, from one bullish Cash Buyer.
Most in the industry are still attempting to talk the market down, with either depreciating currencies in Pakistan and especially in Turkey (with record lows being recorded by the week), fluctuating steel plate prices in Bangladesh and India, and uncertainty on forward markets, being one of the chief concerns of the moment.
As such it may be a quieter end to the year across the sub-continent, as end Buyers take stock of a remarkable 2021, where prices have more than doubled and the industry now adjusts to these new realities, at and above USD 600/LT LDT.
For week 49 of 2021, GMS demo rankings / pricing for the week are as below.
Source: GMS,Inc. (https://www.gmsinc.net/gms_new/index.php/web)