This was due to Pakistan, Bangladesh and Turkey being closed, due to Eid holidays and the traditionally quieter monsoon season gradually getting under way in the Indian sub-continent, GMS said in its weekly report.
There was a brief bounce in the Indian market following the election victory of the pro-business Modi, but local steel prices began to cool off and Alang buyers appeared notably reluctant to commit to new vessels.
Most of the market focus was shifting to Alang, due to the overall intransigence of Pakistan and Bangladesh and the higher offers emanating from India.
The Bangladesh market remained the quietest, with the upcoming budgetthis week likely to determine the immediate direction on prices, which have already fallen by $20 – $30 per ldt over the last few weeks.
Most yards in Chattogram were also full of tonnage and demand was at the lowest it has been all year, with no new inquiries emanating from local buyers, GMS said.
The expectation, which seems to be the case year after year, is that new duties/taxes are set to be announced in this budget and prices are likely to decline further thereafter.
As a result, Bangladeshi buyers are no longer keen to import fresh tonnage before the budget date, given the likelihood of increasing duties this week.
Eid holidays have kept nearly all markets much quieter – perhaps good timing given that much of the shipping community has been gathering in Norway for Nor-Shipping last week.
However, a few interesting sales did manage to register to ever ready cash buyers, GMS concluded.
GMS also reported that the 1996-built 37,449 dwt ‘Bow Jubail’ had been committed to Indian recyclers for $835 per ldt on the basis of ‘as is’ Fujairah with 2,250 tonnes of stainless steel content on board.