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GMS Market Commentary in Week 02 - Exuberance Maintains

Steel News - Published on Tue, 14 Jan 2020

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The exuberance displayed during the final few weeks of 2019 and the onset of 2020 has showed no signs of abating, with several increasingly impressive sales taking place at ever increasing numbers. Demand and sentiments remain positively positioned in all markets, as local steel plate prices have gained ground - most notably in India, where levels have shot up by nearly USD 40/Ton in a matter of a few weeks. For perhaps the first time since the onset of 2019, India has positioned itself ahead of Bangladesh in the weekly rankings, with subcontinent competitors struggling to compete on container vessels that are beginning to see prices well in excess of USD 400/LDT from India once again.

Bangladesh remains the go to location for the largest LDT units on offer and several VLOCs have been sold to Chattogram buyers over the past few weeks. However, capable and performing End Buyers are starting to dwindle in Bangladesh, with banks becoming tougher on L/C opening limits – especially on the larger LDT units.

Whilst increased enquiries and an eagerness to buy is emerging from Pakistan as well, there have been very few concrete results (in terms of confirmed sales) and even with a Capesize bulker sold basis an India – Pakistan range delivery this week, it would not be surprising to see this unit end up in Alang due to the continued nervousness and lack of confidence to acquire units, especially after the Gadani market spending nearly two years on the sidelines.

Finally, the Turkish market continues its treacherous trek through its ship recycling timeline with little to show this week again, other than a couple of previously concluded large LDT units arriving locally this week.

For week 2 of 2020, GMS demo rankings / pricing for the week are as below.
DemoLocationSentimentDry BulkTankersContainers
1IndiaImprovingUSD 380/LTUSD 390/LTUSD 400/LT
2BangladeshImprovingUSD 370/LTUSD 380/LTUSD 390/LT
3PakistanImprovingUSD 360/LTUSD 370/LTUSD 380/LT
4TurkeySteadyUSD 230/MTUSD 240/MTUSD 240/MT

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Posted By : Rabi Wangkhem on Tue, 14 Jan 2020
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