There is some emerging hesitation in the sub-continent markets this week, as the traditionally slower / quieter monsoon and summer months approach and the steady firming of steel prices seen over the past month or so, start to slow.
What comes up must eventually come down, and whilst future prices remain well poised (at least for the time being), it seems as though the recent rally on prices may have reached its peak and some corrections on levels may be due on prices further down the line says a Weekly Report Analysed in GMS.
Bangladesh Tweaks
Vessels continue to arrive and beach in the particularly busy Bangladeshi market and some of the demand is seemingly starting to wane in Chattogram. Yet, the close-on-the-heels Pakistani market also seems to have caught a case of the nerves and is reluctant to compete as aggressively on any market tonnage on offer this week.
Covid chaos
India has likewise had to endure a cooling of steel prices, with over Rs. 1,000 lost over the course of the week, as the chaos wrought by Covid-19 shows few signs of dissipating just yet. As oxygen supplies are being diverted for life-saving purposes, activity at Alang yards remains dismal to non-existent.
Finally, vessel takeovers at various ports across the globe are becoming increasingly
challenging, with stringent quarantine and entry rules limiting all but a handful of locations
for vessel deliveries.
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Source: GMS
