The close of the week saw the Indian ship recycling scene mirroring international stock market turmoil, with a fair degree of uncertainty and nerves starting to enter the market, following the unrestrained bullishness of the week before.
Falls of almost INR 800 per tonne were seen (almost USD 20/LT) to take levels back to where they were almost two weeks ago. Part of the reason for the falls are down to the Indian rupee depreciating badly against the US dollar further dampening local sentiment and leaving the majority of buyers on wait and watch mode until some new outlook on numbers becomes evident Such volatility is almost customary now in a market that lives by the day and is largely driven by commodity prices, exchange rates and speculation/rumor.
Nevertheless, cash buyers continued to fork out huge sums on desired units the US owned (and thus always likely to receive a premium) SEABULK AMERICA (11,729 LDT) found one buyer willing to pay a whopping USD 518/LT LDT 'as is' Port Arthur iii Texas.
With expected huge delivery costs and time, it is unsure whether workable numbers will be there at the time of delivery with Indian prices in a constant state of flux and rocked on its heels by the end of this week, the timing perhaps could not have been worse to fix at such levels.
Source: Steel Guru (Sourced from GMS Weekly). 10 august 2011