Dubai - The ongoing (and seemingly unending) decline being witnessed in the sub-continent markets showed no signs of slowing this week, with some truly pitiful performances seen from all locations. The 10% VAT introduced in Bangladesh has been the big news from this market over the last few weeks and it has lead to a USD 25/LDT decline in local prices - resulting in very few fresh offers or even deals being concluded to Chattogram Buyers.
Pakistan has likewise suffered a negative budget and some drastic currency depreciations & declines in local steel plate prices of late, leaving minimal buying interest form Gadani for any available ships. This has therefore transferred much of the industry’s attention towards the Indian market, with several deals being concluded to Alang Buyers – each at ever decreasing levels, as local steel plate prices have fallen by about USD 25/LDT in the last fortnight alone.
It was always expected that the annual monsoon season would be a comparatively quieter period in the Indian sub-continent, especially after the frantic first six months of the year (especially in Bangladesh). As such, the last few weeks have subsequently delivered a far more muted pricing and demand emanating from all local markets (some USD 50/LDT down from the peaks seen earlier this year).
It will certainly take several months for the tonnage beached in Bangladesh to be digested and Associations in both Pakistan and Bangladesh will be hoping that they can overturn the negative elements of the irrespective recent budgets. However, for the time being,sentiments remain extremely strained across all markets. Even in Turkey, where the domestic fundamentals have suspended the local market in inaction, as the Turkish Lira and local steel plate prices remain unmoved since last week, with little change to report from this market.