The Indian Rupee this week sunk to its lowest level EVER, against the US Dollar. As such, any end buyer who had been growing in confidence and emerging to the bidding table again, quickly retreated with doors firmly shut.
As such there were no market sales to report and no potential sales on the horizon with most cash buyers now diverting their tonnage AWAY from WC India. Moreover, there remained little in the way of optimism for any deals due to arrive that were previously concluded at much higher levels.
Renegotiations have become a familiar scene these days in
and nerves are so frayed locally, that many are beginning to speculate whether
the nadir has already been reached. India
The couple of signs of encouragement on the horizon were the stable local steel plate prices in addition to the potential involvement of the Government, to avert a further slide. More will be known on this front but from here, it seems, the only way is up.
Interestingly despite reports to the contrary, it appears that MOL have sold two more of their double hulled VLCCs (ORION TRADER - 1998 Bit, 42,137 LDT and OHMINESAN, 1996 Bit, 38,949 LDT) for guaranteed green recycling in WC India for a price of USD 470/LT LDT. This follows the sale of first double hull VLCC to be scrapped several weeks ago, the ATLANTIC LIBERTY to the same green yard in Alang.
Source: Steel Guru (Sourced from GMS Weekly). 20 December 2011http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_50/241838.html