Sub continent markets finally started to fire again this
week not quite all in tandem as the traditional fourth quarter surge (before
year-end) perhaps finally appears to have taken hold.
A number of interesting, high priced and large LDT units
were also confirmed this week a variety that included a VLCC, a capesize
bulker, large LDT heavy lift carrier and a RoRo. There is still an element of
cash buyer speculation involved with these sales, but the fundamentals are
finally conspiring to present a bullish market in the sub-continent overall.
The unexpected blip of the past few weeks in India mat had
seen the currency begin to depreciate down towards INR 64 to the US Dollar,
finally corrected itself this week. The INR was trading at a far more
respectable Rs. 61 to the Dollar as end buvers felt suitably comforted to
resume buying again. Steel prices also made some relatively impressive gains as
India threatened to snatch the position of "The Market of the Week"
from Bangladesh.
Meanwhile, Chittagong saw some worrying reversals this week
however as steel prices endured a worrying slump of BDT 1,000 over consecutive
days to leave prices down by some USD 25/LT LDT from the previous week. End
buyers continue to speculate on tonnage though with political instability,
strikes, and upcoming elections, all likely to see potentially steel prices
spike in the coming months.
Pakistan also saw a hungry market burst into life. Even
though the currency continued to disappoint at excess PKR 107 to the dollar,
demand had been building for some weeks now as open end buyers saw a majority
of the market tonnage head to Bangladeshi shores (and even favoured VLCC units
cleaned for hot works to facilitate this).
Lastly, China continued to struggle to compete with their
sub-continent competitors once again, and even with year-end approaching, it
could well be a struggle for the foreseeable fixture at current rates.
For week 47 of 2013, GMS demo rankings for the week are as
below:
|
Country
|
Market Sentiment
|
GEN CARGO Prices
|
TANKER Prices
|
|
Bangladesh
|
Bullish
|
USD 400/lt ldt
|
USD 430/lt ldt
|
|
India
|
Bullish
|
USD 400/lt ldt
|
USD 425/lt ldt
|
|
Pakistan
|
Bullish
|
USD 400/lt ldt
|
USD 425/lt ldt
|
|
China
|
Weak
|
USD 330/lt ldt
|
USD 340/lt ldt
|
Source: steel guru. 26 November 2013
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