However, the decline of the Bangladeshi market over the last few weeks and the consistent inadequacies of Pakistan over the last three quarters have meant that India was likely to be at the top of the standing by default, especially as the area heads towards the monsoon season, GMS said in its weekly report.
The Bangladeshi market remained out of the picture for another week, with prices having declined by about $25 per ldt lately, thanks to faltering steel plate prices and domestic recycling yards that are full at present.
Having bought the bulk of the market tonnage through much of this year, there are very few capable (in terms of ready LCs) and open end buyers in Chattogram to take in new vessels, especially as there remain a number of good spec, unsold candidates in various cash buyers’ hands.
Thus, the focus now shifts to India, where capacity is not an issue, even though several end buyers have struggled with LCs this year, amidst increasingly tighter regulations from domestic banks.
Just when Pakistan had an opportunity to come back into the arena, having been largely absent for a better part of the last eight months or so, the country experienced another significant currency depreciation, which saw prices decline by another 10%, thereby ensuring Gadani remained notably apart from its sub-continent neighbours and uncompetitive for another week.
Further West, after suffering a staggering depreciation in fundamentals, the Turkish market seemed to stabilise last week, as both steel plate prices and the Turkish Lira eventually found an even footing, GMS concluded.