- 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 2011
http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_39/228307.html
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