As Diwali holidays came to an end in India, many cash buyers and owners were holding their breath for an improvement in the dire rates seen from all three competing markets in the Indian sub continent.
Indian holidays have coincided with a worsening rupee (that is once again trading at INR 55 to the US Dollar) and domestic steel plate prices that have come off by as much as USD 25/LT LDT in the past week. Pakistan has followed their Indian neighbors in trailing off their numbers accordingly (despite Eid holidays ending some time ago and the market fully open to buy).
Lastly, Bangladesh has resumed their much awaited offering, albeit in a disappointing fashion. The only market to display any sort of bullishness and aggression to buy is China and several private (much from Chinese owner direct to yard) and market deals continue to take place there.
Much like the fourth quarter of 2011, the repeated failings of the Indian rupee has stunned many end buyers and cash buyers' alike, who are once again set to lose significantly on their existing inventories. The cruel and volatile nature of the market has yet again displayed itself in full (not for the first time this year) and there has been little relief from the supposedly firming (competing) markets like Bangladesh to take the burden away from others.
The supply of tonnage remains strong even though rates on the dry side appear to have picked up a touch, something that has surprisingly led to one or two older even 1990s built units iii the capesize sector being resold for further trading. A slowdown in the volumes of tonnage to the demo yards may even see rates return to previous highs.
For week 46 of 2012, GMS demo rankings for the week are as below:
|Country||Market Sentiment||GEN CARGO Prices||TANKER Prices|
|Bangladesh||Cautious||USD 390/lt ldt||USD 420/lt ldt|
|Pakistan||Cautious||USD 390/lt ldt||USD 420/lt ldt|
|India||Weak||USD 385/lt ldt||USD 420/lt ldt|
|China||Bullish||USD 350/lt ldt||USD 370/lt ldt|
Source - GMS Weekly