Some juicv candidates and the first high profile tankers in months finally made their wav to the Indian shores as the local market pushed through the previous peak of the year, with some truly astounding numbers.
The Greek owned BEL TAYLOR (14,830 LDT) was finally re sold for USD 575/LT LDT 'as is' Singapore with 900 T IFO ROB 5 USD higher than the previous week, when the deal was committed and then failed due to a further trading interest.
Additionally, Tanker Pacific owned PARKWAY (20,089 LDT) likewise received some big numbers for
only delivery at USD 572/LT LDT. Both deals have been fixed basis the tankers being cleaned gas free for man entry and hot works (as would also be required for India ). Bangladesh
Whether this is, onlv a temporary spike though is a matter of some debate, due to the following two primary factors believed to be positively affecting the prices for vessels at present. Power cuts for major steel plants in
in addition to a Supreme Court order to shut down iron ore mines in Karnataka, both have driven prices up on the speculation that local steel plate prices will rise even more due to potential shortfalls in the domestic market for production of steel/raw material. India
On the other hand, there is speculation that prices could return to levels from a few weeks ago as the power cuts could be lifted in 1 or 2 weeks and iron ore mines in other parts of the country (Goa, Bihar, Orissa for example) are expected to continue production and might pick up on the subsequent shortfalls.
As such, the upcoming month or two does appear to be a time for Cash Buyers to keep their ears close to the ground, especially when offers for vessels continue to climb as rapidly as they have been over the last several weeks and some incredibly high priced fixtures continue to take place.
Source: Steel Guru (Sourced from GMS Weekly) Wednesday, 03 Aug 2011