With all markets now facing a stale sentiment and lack of any real buying interest, it was becoming increasingly difficult to conclude any market vessels at all especially with Seller's price ideas remaining unrealistically high (in comparison to the prevailing market conditions) and yards (especially across the sub continent) full of tonnage.
The unfortunate fact is that vessels put on the market today are chasing prices down and any fixture at this point remains an achievement in of itself.
The remarkable indifference to acquiring new units could be down to a number of different factors. Chief amongst them is the massive number of vessels recently acquired and the fact that most of the bigger, financially solvent hot buyers have already filled their plots for the immediate future.
This has conveniently coincided with the onset of the monsoon season a time when most buyers are not keen to beach vessels, owing to a shortage of local labor. Furthermore, upcoming budgets in both Pakistan and Bangladesh have seen end buyers at these locations keen to stock yards before any announcement is made that may see an increase in import tax (though usually, most budgets bring with them very little material change).
China likewise, is experiencing capacity issues of its own but along with India, there were some significant falls in local scrap steel prices. This meant a full house of weak markets with most buyers (both cash and end users) content to wait and watch before committing on new tonnage.
Source: Steel Guru. 15 May 2012