The Trump announcement of tariffs on nations currently exporting various grades of the metal to the US is unquestionably set to dampen global steel prices and ship recycling sentiment across the Indian sub-continent, reports cash buyer GMS.“Every week is now intent on bringing with it, an entirely new economic reality for the world to re-adjust to, turning everyday business practices into an extremely erratic and volatile way of conducting any type of practical international trade, which stands to deliver a year of buckled performances, given that key global economic indicators are increasingly displaying the ill-effects.”
Freight rates too are being subjected to conflating performances across weeks as only last week did the markets witness charter rates fall, to see them rise back up as the Baltic Dry Exchange Dry Index soared a whopping (nearly) 5% this week, says GMS. This was driven primarily on the back of the Cape size sector which itself reported a 10.6% jump, reaching the highest levels seen since April of this year.
Monsoon rains will deliver the conventional decline in demand and pricing, regardless of availability of tonnage at the bidding tables over the next quarter or so.
“Currencies too continue to take a beating as nearly all of the major ship recycling destinations reported declines against the U.S. Dollar, except Pakistan, which also (surprisingly) reported more arrivals this week than neighboring India has over the last two. Indian recyclers have clearly endured another difficult week following the fragile cessation of an armed conflict with Pakistan, as Indian offers on tonnage have notably retreated by over 5% since the peaks seen of early May.”
Pakistani recyclers remain some ways behind all their industrywide counterparts in getting ready for the Hong Kong Convention and despite some initial works reportedly taking place, no yards in Gadani will be ready by June 26.
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