- Dust settles
- Volatility reigns
- Cash buyer control in crisis
Fear Makes The Market Go Round!
As the dust settles on some dramatic declines and falls in the Indian market over the last few weeks, cash buyers, owners and brokers are all trying to ascertain exactly where current levels are, in order to peg the new reality on prices.
Certain parties seem content to buy at previous levels, comfortable in their assertions that the market will once again take off to mirror former glories. There are those (perhaps more sensible) parties urging caution, having seen the losses incurred by nearly every buyer in the last few weeks, and advising that the falls just witnessed are in fact, more of a logical correction, and possibly, more permanent in nature.
The fact remains that the Indian market is as history has dictated one of the most volatile of markets, prone to fluctuations at the drop of a hat. Fear makes this market go round.
Therefore, as it was last week, the scene on the ground in terms of acquiring new units was very much a tentative one. The slew of renegotiations, failed sails, and increased scrutiny of vessels and their details has now unfortunately become the main preserve of local buyers.
It may therefore be sometime before we see a renewed aggression on fresh units, once end buyers have done their best to save pennies on those incoming vessels purchased at the height of the market.
NO Market Sales Reported
Source: Steel Guru (Sourced from GMS Weekly). 04 October 2011http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_39/228307.html