Whilst the Indian Rupee remains in a perilous state, steel prices recovered somewhat this week to give the industry a comparatively healthier outlook, than the doldrums of last week. Indeed, there were one or two deals done at impressive numbers, as cash buyers continued to push the boundaries of breakeven economics
The large Zodiac container MSC VENEZUELA (20, 750 LDT) was committed for a very firm USD 440/LT LDT as the acquired taste for containers kept Indian prices high for another week.
There remains however, an underlying feeling that if the Rupee does depreciate to the historical low of 57 to the US dollar (and perhaps lower), it is likely we may see end buyers retreating altogether from the offering. With huge amounts already being lost on existing inventories, it is little wonder that many yards are closing down, being sold, or simply refusing to offer for the time being.
The one bright spot concerned the ever-volatile steel prices that made some noteworthy gains this week. The ongoing monsoon season however saw fewer overall buyers in the market as much of the labor returns home at this time of the year and beachings are often unsatisfactory / cutting increasingly difficult due to the ongoing rains.
Source: steel guru. 11 June 2013