The Indian currency was the hot topic of conversation this week as the Indian Rupee continued its unprecedented slide, above and beyond the dreaded 60 mark against the US Dollar.
Expectedly, total panic has set into the local market something that filtered through to the international scene as well as most buyers chose to halt any new buying activity until the slide had reversed.
It could be a testing summer if steel prices, currency, and the ongoing political volatility continue to conspire in the Indian sub-continent. Presently, there remains no real incentive for any market to cut loose ahead of the pack - hence the likely reason present levels appear so bunched together currently.
The Pakistan and Bangladesh markets seem to be finding excuses to peg their numbers just above what a deflated Indian market maybe offering at present.
The number of unsold vessels is therefore only slowly starting to dwindle with many cash buyers holding out for a much hoped for recovery before selling at great losses. The general feeling is that the markets have bottomed out this week.
However, that was also the expectation the week before, until the Indian Rupee fell to 60.6 this week.
The monsoon summer months have historically been significantly weaker, in the years gone by it has been well documented that end buyers prefer not to acquire tonnage during this time, due to a shortage of labor and unsatisfactory beaching / cutting procedures during the rainy season.
Filially, China barely struggled to justify a footnote for another week with further poor pricing and sentiment continuing. This has seen the Turkish and even Vietnamese & Indonesian markets, worthy of mentions owing to increased activity and levels on offer in these respective recycling destinations.
For week 26 of 2013, GMS demo rankings for the week are as below:
GEN CARGO Prices
USD 400/lt ldt
USD 425/lt ldt
USD 395/lt ldt
USD 420/lt ldt
USD 390/Lt ldt
USD 415/lt ldt
USD 310/lt ldt
USD 320/lt ldt
Source: steel guru. 3 July 2013