Markets - Recycling - Minimal buying interest

Jul 05 2019

The seemingly unending decline being witnessed in the Indian sub-continent recycling markets showed no signs of slowing last week, GMS reported.

A 10% VAT introduced by Bangladesh was the big news from this market over the last few weeks and it has lead to a $25 per ldt decline in local prices, resulting in very few fresh offers or even deals being concluded to Chattogram buyers.

Similarly, Pakistan has suffered a negative budget and some drastic currency depreciations and declines in local steel plate prices of late, leaving minimal buying interest form Gadani for any available ships.

This has transferred much of the industry’s attention towards the Indian market, with several deals being concluded to Alang buyers, each at ever decreasing levels, as local steel plate prices fell by about $25 per ldt in the last fortnight alone.

It was expected that the annual monsoon season would be a comparatively quieter period in the Indian sub-continent, especially after the frantic first six months of this year, especially in Bangladesh.

As such, the last few weeks have subsequently delivered a far more muted pricing and demand emanating from all local markets - some $50 per ldt down from the peaks seen earlier this year.

It will certainly take several months for the tonnage beached in Bangladesh to be digested and associations in both Pakistan and Bangladesh will be hoping that they can overturn the negative elements of their respective recent budgets.

However, for the time being, sentiments were extremely strained across all markets.

Even in Turkey, where the domestic fundamentals led to the local market’s  inaction,  the Turkish Lira and local steel plate prices were unmoved since the week before, with little change to report from this area, GMS concluded.

Brokers have reported the sale of the 1996-built MR ‘Oceana’ to Indian interests for $440 per ldt.


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