A hugely damaging week saw the Indian Rupee slip to a HISTORICAL low of INR 58.99 against the US Dollar, and had all recyclers in panic mode. There was even speculation on the shorefront that the currency could continue to fall and end up trading into the 60s, leaving a virtual shutdown in the industry and huge losses on all end buyer inventory stocking yards (which is bought in USD and sold on locally in Rupees).
The rollercoaster week however saw steel prices settle somewhat and the currency back down from the suicidal levels of early week, to close at INR 57.21 to the Dollar. It did not quite turn out to be the crisis that many were anticipating and the neutral outcome in both, Bangladesh and Pakistan budgets leaves some hope for the future.
Of the deals done, the smaller container ST. NIKOLAOS (6,850 LDT) fetched a speculative USD 445/LT LDT. The UK ownership and West German build in 1994 largely attributable to the high price on show.
When not being outmuscled by either Pakistan or even Bangladesh on new tonnage, it may be a quieter few weeks in the Indian market (especially with monsoon season fully underway), as end buyers wait and watch to see a semblance of stability in both currency and steel prices before recommencing their buying activities.
Source: steelguru. 18 Jun 2013http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_24/315586.html