The previous week witnessed the rupee slip to consecutive lows for seven consecutive trading sessions and finish at a historic nadir come Thursday.
Similar to the fourth quarter of last year, the falling Rupee has seen very few end buyers even willing to come forth and offer on available tonnage. In fact, the Rupee took such an unprecedented fall during last week that reportedly, the Reserve Bank of India stepped in to cull the fall.
As a result, local confidence took an extreme knock reflective of an overall sense of uncertainty in the national economy going forward.
However, there was moderate reprieve this week as steel prices finally showed marginal signs of improvement as the week ended, with some gains made following the dramatic falls of several weeks ago.
However, as long as the currency remains in turmoil, buying is expected to remain slow for some time. Certainly, a shortage of candidates at the shorefront has been noticeable over the past couple of weeks and it could be that a slowdown in the supply of tonnage brings with it a pickup in prices post monsoon.
Source: Steel Guru. 29 May 2012http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_21/265913.html