As the India market veered from one extreme to the next the currency is now trading above INR 55 to the U.S Dollar once again deals continued to be done at some crazy levels, leaving many under threat of renegotiation or failing altogether.
One deal that was committed and put back on the market was the SUR from Turkish owners, originally done at USD 421 per LT LDT last week but resold this week at USD 419 per LT LDT after the initial deal failed due to some over eagerness from original buyers on the price.
The BOW CHEETAH from Odfjell was sold for green recycling at levels region USD 465 per LT LDT with about 70 tonne of stainless steel on board boosting up the price.
DANAOS sold their third container this year with the sale of the MV ELBE for USD 459 per LT LDT + inward clearance for Buyer’s account, with the MPP LUGANO fetching about USD 425 per LT LDT for an India delivery.
Lastly, general cargo MV AMIRA NADIA from Egyptian owners was reportedly sold at a seemingly aggressive USD 415 per LT. Being relatively small LDT and Romanian built, it was one of the eager purchases of the week.
Many buyers either having purchased vessels recently or noting the extreme fluctuations in both currency and steel prices seem to have decided to stay away from the aggressive buying as monsoon season approaches. It may be that a critical breaking point in the year has been reached in India, which will be worth keeping an eye on.
Source: steel guru. 22 May 2013http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_20/312812.html