Signs this week were in place, that a likely end to the catastrophic falls in excess of USD 100 per LT LDT over the past few months had been realized. Indeed, the market even started to signal some activity, with further enquiries for vessels from end buyers and several deals done (both private and off market).
However, several weeks of stability need to be seen, both in terms of levels, purchasing activity and in terms of sensible deliveries into all markets - as there is still a real (lingering) sense of apprehension from end buyers and cash buyers alike, in committing to new units in this extremely volatile environment.
The news from India revolved around the much anticipated government intervention to stabilize the currency when Indian PM Dr Manmohan Singh took additional charge of the Finance Ministry and the Rupee immediately started to appreciate (by as much as 2%).
This was also coupled with the positive steps made at the Euro summit, with commitments made to the Euro and the intended rescue of beleaguered banks in Spain and Italy.
The steadying of the currency in India wall have a key impact going forward in all markets as steel plate prices have been steady and even slightly positive in recent weeks across the board, which may well see an improvement in prices for vessels in the weeks ahead.
The slowing in growth in both India and China has been a cause for concern this year, but many are now hoping that the worst is (hopefully) finally over.
Source: steel guru. 4 July 2012http://www.steelguru.com/international_news/GMS_report_on_ship_breaking_industry_for_WEEK_26_2012/271754.html