- Majority of dry fetching over 500/Ton
- Confusing signs
- Steel plate price and Indian rupee weaken
Cash Buyers remained hard at work at the bidding tables pegging down tonnage at relatively strong levels, destined for the shores of
With a plethora of dry tonnage on offer and most prices well above USD 500 per
tonne mark, there were plenty of willing owners ready to fix away their units
for the right price. India
However, the elephant in the room is the question that lingers on in everyone's mind is what is it driving up the prices?
Some of the usual suspects to blame (as stated above) could be the end of the Monsoon season, a likely firming from Bangladesh that could drive Indian prices up, mixed in with a healthy dose of speculation on pari of the Cash Buyers. However, the primary drivers behind the levels ie stability of the Indian Rupee (vs the US Dollar) local steel plate prices, both have remained significantly unchanged over the recent weeks to have any positive/noteworthy effect on the prices of ships.
Notwithstanding the puzzle, a number of sales have taken place into the local market at decent numbers i.e. all well above the USD 500/Ton mark. Of the sales, noteworthy was M/T CARIBIC where the Buyers concluded at an outrageous price of USD 590/Ton. Other than being built at a good yard (which fetches a premium similar to
built tonnage) and Stainless Steel
lines, only the Cash Buyer who paid the whopper of a price could justify the
reason. Similar reasons have driven the sale of Bulker ST. ANNA that fetched an
incredibly high price given the market conditions. Kherson
Notwithstanding, the market does appear to be gearing up for some positive movement in the near future.
Source: GMS Weekly. Tuesday, 06 September 2011