The prevailing feeling of doom surrounding the Indian market of late this week materialized into a full-blown crisis with the virtual non-existence of offers form local recyclers, and predictions of further downward corrections now imminent.
Indeed, the lack of offering even began to filter through to cash buyers with very few offers forthcoming from their side, basis India delivery. Only for vessels likelv to be in heavy demand were prices mentioned however for older, poorly maintained bulkers, overpriced units and reefers, soliciting any interest at all from the local market was proving to be incredibly challenging indeed.
That did not stop UASC committing vet another container earlier in the week with the HAMMARABI (13,121 LDT} sold 'as is' Khor Fakkan for an astonishing (especially on today's market) price of USD 498/LT LDT (with sufficient fuel for the voyage over). There was also news of German-controlled container vessel BUXMASTER being committed at similar levels basis "as is' JEBEL ALI, however given the fact that the vessel is nearly half the LDT of the HAMMARABI, would seem as though the vessel was committed to trading Buyers.
Despite steel prices remaining strong, the rupee has continued to struggle and the sheer volume of vessels has left end buyers able to pick and choose the best whilst controlling prices something that has made of the job of cash buyer extremely difficult.
Source: Steel Guru (Sourced from GMS Weekly). 24 April 2012