The Indian market endured another highly turbulent week, which bv the close had seen steel prices come off bv almost USD 15-20/LT LDT and saw the Indian Rupee tumbling down and trading at a near-historical low for the year at INR 55.65 to the US Dollar.
Whilst the local steel plate prices have been particularly volatile of late, the latest news regarding the currency will certainly knock end buyers back particularly given the multitude of high priced deals done and the fact that, as it stands, all end buyers are currently losing significant money on their recent fixtures.
Indeed, the pressure started to tell on certain cash buyers as well, as vet more deals started to stall - facing either renegotiations or failure altogether. Following the failed deal of the Turkish owned handy size bulker SUR (6/170 LDT) last week, the MPP LUGANO (9,055 LDT) was also put back on the market after failing to one buyer at region LJSD 435/LT LDT.
It may be that end buyers and cash buyers would rather see some stability in the market and focus on delivering existing high priced inventories, rather than plug ahead with new deals particularly with many owners seemingly intent on asking the previous week's prices.
Source: steel guru. 28 May 2013