A week of relative stability in prices saw an
increasing number of owners taking the plunge and selling their units At
prevailing levels this week. India, once again, was the most active market -
unsurprising, given that they have the broadest selection of buvers able to
take all types and sizes and vessels, particularly considering the recently
abundant supplv of containers from the German market!
The volatility that has plagued the Indian market for
much of this year already (and for large chunks of last year) is still very
much in evidence, with the currency once more trading back down at 54 to the US
Dollar and steel prices marooned some USD 25/LT LDT down from the peaks of the
year.
For this reason, manv of those vessels arriving at
Alang that were concluded at previous highs, are either facing or are extremely
likely to face issues upon arrival. Already we have seen vessels arriving into
Alang and facing hefty renegotiations from cash buyers unable to perform at the
agreed levels. The perils of the market are not something that owners should
have to deal with if going with strong and reputable cash buyers from the
outset.
Bangladesh and Pakistan endured quieter overall weeks
with fewer of their more favored units open for sale. The Chittagong market is
still a relative newcomer to container purchases (with their pricing still not
quite as sharp as India for these units) and Pakistan simply refuses to take
containers owing to beaching draft issues. For this reason, despite a
comparatively weak market, India has stayed ahead on volumes so far this year.
China was the one market firing on all cylinders once
again, following the conclusion of the Chinese New year and the ability to buy
at levels approaching those of the Indian sub¬continent. Therefore, most the
vessels positioned in the Far East were likely to end up as China candidates,
rather than owners facing the risk of bringing their vessels over to the Indian
sub-continent with the extreme market volatility still very much in evidence
there.
For week 08 of 2013, GMS demo rankings for the week
are as below:
|
Country
|
Market Sentiment
|
GEN CARGO Prices
|
TANKER Prices
|
|
Bangladesh
|
Cautious
|
USD 400/ltldt
|
USD 425/ltldt
|
|
Pakistan
|
Cautious
|
USD 390/ltldt
|
USD 420/ltldt
|
|
India
|
Weak
|
USD 385/ltldt
|
USD 420/ltldt
|
|
China
|
Bullish
|
USD 375/ltldt
|
USD 400/ltldt
|
Source: steelguru.
26 February 2013
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