There was no letting up this week in the misery currently being endured by the Indian ship recycling market. The Indian Rupee was routinely trading at excess INR 60 to the US Dollar for a majority of the week, while local steel plate prices continued to fluctuate wildly. For that reason, few end buyers were willing to discuss levels on new or existing tonnages as local demand for vessels seemed to all but dry up.
With both Bangladesh and Pakistan likely to be ahead of India in the foreseeable future, it may be a bleak few months ahead unless the (Indian) currency settles well below the INR 60 mark to the USD again, and incites more confidence from local recyclers to negotiate.
With ship-steel also starting to stockpile at local yards (as in China), most Indian end buyers have yet to shift their expensive inventories for the year, before moving onto the new (and hopefully from their perspective) cheaper purchases.
That current rates on scrap steel remain so dire (coupled with the fact that end buyers have purchased in US dollars and have to sell in Indian rupees) has only served to heighten concerns locally, with almost all buyers losing significant amounts of money, from vessels purchased over the past few years at least.
Source: steel guru. 11 July 2013