As news began to filter through of the success of a recycler beaching two vessels in Bangladesh this week, prices in India shot up by about USD 10 to USD 20 per tonne as many in the industry began to anticipate a return of the big hitters to the bidding tables. This very anticipation unexpectedly drove prices up this week as a total of seven market units were committed to Alang buyers.
However, the reality on the ground in Bangladesh remains slightly different and the extreme resistance in the wake of the beachings is expected to place into jeopardy, subsequent attempts to import and beach vessels. Consequently, we expect little activity from Bangladesh until the rest of the local yards open up, which is still expected to take some time.
Meanwhile, based on the extremely high prices of some purchases this week, it appears some cash buyers are taking positions with their fixtures. On the other hand, others remain on the conservative side, possibly due to a healthy dose of inventory already on hand. As a result, differences of almost USD 40 per tonne have been seen between those looking to take positions (perhaps with the Bangladesh angle in mind) and those inclined to stay on the more cautious/realistic side.
At the time of writing, high profile Avin, Tanker Pacific and Great Eastern vessels were being negotiated and the spread of levels was of some mystery to both owners and brokers alike.
Finally, Turkey too jumped in on the action this week and managed to take home single decker M/V KOBZAR I of 1,870 LDT at a firm price of USD 295 per LT LDT.
For week 38, GMS demo rankings for the week are as below:
Country Market Prices GEN Cargo Sentiment Tanker Prices
India Bullish USD405/ltldt USD445/ltldt
Pakistan Steady USD395/ltldt USD430/ltldt
China Bullish USD380/ltldt USD400/ltldt
Bangladesh Bullish N/A N/A
Per LDT
(Sourced from GFMS)
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