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GMS Market Commentary in India in Week 11 - CLOSING OUT FINANCIAL YEAR!

Steel News - Published on Tue, 19 Mar 2019

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As the Indian financial year draws nearer to a close and volatile domestic fundamentals + local offerings continue to sabotage any chance that Alang Recyclers may have at successfully competing with a far stronger Bangladeshi market, local buyers continue to seemingly struggle with getting their vessels delivered or are entirely abstaining from buying new units at today’s firmer levels, whilst they get their affairs and accounts in order. Domestically, the election, which was previously considered to be Mr. Modi’s to lose only, has since turned into a far tighter affair (despite proclamations of success in easing recent tensions with Pakistan) and it will be worth keeping a close eye on proceedings as events unfold.

Fundamentally, even though steel prices have endured an overall negative week (when compared to the highs from recent weeks), there were (again) some encouraging gains with a minor improvement registering this week. The INR too continues to firm against the US Dollar, as it gradually approaches the INR 69.30 mark. Although both fundamentals reported improvements in unison, the increases were not enough to firm up local offerings on vessels and certainly not at the impressive levels that a healthy majority of sales over the last 10 working days have registered.

On the sales front, Costamare of Greece concluded a couple of their containers over the last couple of weeks, both basis an ‘as is’ Singapore delivery and for strictly green recycling. The PIRAEUS (19,838 LDT) was sold at a firm USD 448.50/LT with 280 Tons of bunkers included in the sale, followed by MSC PYLOS (11,316 LDT), that was concluded for an even firmer USD 452/LT albeit with about 460 Tons of bunkers included in the sale. Additionally, MSC concluded their MSC RONIT (7,540 LDT) at a decent USD 446/LT basis an ‘as is’ Fujairah delivery and finally, reefer ZENIT was concluded at a temperamentally sound USD 414/LT basis an Alang delivery.

Given these firmer fixing levels, only time will tell how these resales eventually fare.

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Posted By : Rabi Wangkhem on Tue, 19 Mar 2019
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