With the Indian budget being announced this week, very few surprises came to pass in the ship recycling sector i.e. no increases for import taxes (as was rumored / feared prior to the announcement) led to a momentary mid-week surge of optimism as a few deals were committed.
However, the gloom had fully sunk in once again come the end of the week as the currency slid back to a perilous Rs. 54.90 against the U.S. Dollar - dangerously close to the 55 levels that have caused so much consternation to end buyers over the past year or so.
Nonetheless, several sales were confirmed over the course of the week, with two Danaos controlled containers fetching firm numbers. The PRIDE (14,943 LDT) and the HENRY (14,158 LDT) both fetched numbers in the 440s/LT LDT for a delivery India (showing just how far the market has come off since the highs of one month ago when levels into the high 460s and even 470s/LT LDT were seen on earlier container sales).
In the other sale for the week, the bulker VALPOLICELLA (9,387 LDT) also received an impressive USD 422/LT LDT.
If the currency can improve in the coming week, all are hoping that India can push on once again to ignite some post budget bullishness.
Source: steelguru. 5 March 2013