The worrying steel price reversals and currency fluctuations that had characterized last week in India were compounded this week by the Diwali holidays and an almost constant supply and arrival of vessels.
The Indian rupee last closed at 54.75 to the dollar, close to the INR 55 levels that have proved so troublesome and unprofitable to local buyers in recent times.
Many vessels remain unsold and waiting at anchorage, with a further number also undergoing renegotiation after the unrealistically high prices paid by several cash buyers during the speculative upturn of last month.
In the first 10 days of November 2012, so far 11 ships have beached with yet 30 more waiting and a further 6 declared as incoming by agents. In October an incredible 40 vessels were beached over the two high tides.
Incoming ships and those as yet unsold are likely to face problems upon arrival in the absence of strong cash buyer presence. Most buyers are either firmly in holiday mode, or unwilling to talk on levels whilst the currency and steel prices remain as they are. It could be a difficult November 2012 ahead in India.
Source: Steel Guru. 15 November 2012http://www.steelguru.com/indian_news/GMS_report_on_India_ship_breaking_industry_for_WEEK_45_2012/291637.html