Despite expectations of a potential market improvement over the course of the week and the conclusion of some high profile tonnage at seemingly ceiling prices, the overall tendency for any local market movement remained negative or receding.
The rupee has still made no significant gains on the dollar and many of the high priced vessels that continue to arrive locally are increasingly facing issues with a number now waiting at anchorage, amidst a flurry of end buyer cash buyer renegotiations.
With a raft of Aframax tankers concluded recently at top notch numbers (including the Chandris owned Ukrainian built LOUKA, 15,991 LDT at USD 549/LT LDT), there could be testing times ahead for some market players, especially with end buyers now over-scrutinizing vessel details plans for potential discounts, given the weakened state of the market.
While another Laskarides tanker, the CHINA SPIRIT (6,344 LDT) was concluded this week at an extremely firm USD 580/LT LDT (thanks to West German country of build (usually a premium of about L'SD 10-15/LT LDT), another Laskarides tanker CARIBIC (6,201 LDT - built in Yugoslavia) has yet to beach in West Coast India, despite arriving almost one month ago. News on the ground is that the relevant cash buyer is supposedly facing a resale price of only USD 540/LT LDT despite having purchased at USD 590 per tonne at the peak of the market.
As such, we caution ship-owners and brokers alike; to be wary of the unusually high numbers, which could in fact present its fair share of headaches upon arrival
Source: Steel Guru (Sourced from GMS Weekly). 19 October 2011