The unthinkable became reality this week as the Indian Rupee touched an unprecedented and historical low of INR 60.6 to the U.S. Dollar. With the fears of many end buyers finally realized, an absolute halt to the buying activity in India took hold.
The fact that about FIFTEEN percent of the value of end buyer inventories has been wiped out over the course of this disastrous currency slide alone, is both startling and alarming for the immediate future of the domestic ship-recycling industry.
Whilst steel prices remain as volatile as ever and the monsoon season has seen its traditional cooling of demand / aggression to buy, it may be that we see a period of time on the sidelines for Indian recyclers.
Certainly, cash buyers and owners who have been chasing down the market over the past few months are sure to feel the pinch / struggle with deliveries based on present sentiment.
One sale that was confirmed this week saw the bulker TABA (5,467 LDT) sold for a decent USD 404/LT LDT - of course there may likely be a Pakistan option included on the sale to justify such a price.
Source: steel guru. 3 July 2013