As the ongoing decline in the summer/monsoon months were drastic and significant, going into the fourth quarter of this year, cash buyers with expensive large ldt inventories to offload were still hoping for Bangladesh levels to pick up.
However, the timing of any recovery is still uncertain, GMS said in its weekly report.
Concerns over a US recession, trade wars and the global fall in steel plate prices added further negativity to sentiments last week. As a result, end buyers hesitated to engage in negotiations/firm offers until some stability is restored.
Indian levels have been hit the hardest by the double whammy of collapsing steel plate prices and a depreciating currency. Pakistan was not far behind and was mirroring its nearest competitor’s pricing, as both competed for the dubious honour of being the lowest sub-continent market for another week.
Bangladesh buyers were celebrating Eid during the past week or so and it should be another week before activity picks up again. However, the yards are still full of large ldt units beached earlier this year. Most of these have not been recycled due to the constant rains.
Finally, Turkey’s frozen summer session continued unabated with reportedly no change in steel plate prices although the currency did weaken slightly last week, making matters worse for local recyclers.
GMS also mentioned an interesting sale of a VLOC with over 1,200 tonnes of bunkers ROB at the time of delivery to Bangladesh interests.
The price touched slightly above $400 per ldt - basis a likely Chattogram resale - which was the first time it had reached this level in nearly three months, the company said.