Chaotic scenes ensued this week in India with virtually no end buyers on hand to offer any sort of numbers, after another dramatic week of decline and fall in local prices.
After some initial stability early in the week a lack of capacity, struggling Indian currency (against the US Dollar seeing near record lows again) and falling local scrap steel prices, all combined to make it another week of concerning reversals for a market that has experienced extreme volatility so far this year.
There was very little buying interest as a result, with most end users content to wait and watch the market before committing on perceived overpriced tonnage in the hopes of securing a bargain.
This was something that left many cash buyers in a serious predicament with almost all competing markets likewise struggling. A lack of numbers and an oversupply of candidates left many owners seeing their units unsold come the end of the week, with little hope of finding a buyer unless a serious discount on the price was accepted.
Two reefers were concluded though at some stronger numbers due to non-ferrous contents on board. The SILVER STOCKHOLM (4,127 LDT) and the BRAZILIAN LADY (5,827 LDT) were sold for USD 440/LT LDT and 454/LT LDT respectively.
Source: Steel Guru (Sourced from GMS Weekly). 15 May 2012