Demo rates are on the slide, having dropped by more than $100 per ldt over the last six weeks to fall well below the $400 mark as the monsoon period kicks in across the South Asia.
“Markets across the subcontinent continue to endure a rough ride over the summer months and there is virtually no good news over the recent past that would bring optimism back to the industry,” cash buyer GMS stated in a weekly report.
Clarkson Research Services noted in a recent report: “[T]here have been reports that shipowners who were initially inviting offers for certain units are postponing sales due to the low offers being proposed.”
Steel plate prices in India have declined by about $50 per ldt over the course of July, leaving vessel prices positioned in the region of $390 per ldt.
In Bangladesh prices are dropping too with no sign from Dhaka that there will be a reversal of the 10% VAT imposed in the recent budget, something that has seen prices adjust downward by about $30 per ldt.
Pakistan too has remained out of the buying, with cheap Iranian billet imports that are still putting pressure on local prices and a recent currency collapse, both of which have conspired to see very few vessels being committed to Gadani buyers for nearly a year.
GMS said that the Turkish market continues “to trudge along” unchanged.
Allied Shipbroking warned in its latest weekly report that the bearish demo environment was only likely to get worse in the coming couple of months.