Unwanted records continue to be set as the Indian Rupee persists in its merciless descent into oblivion against the US Dollar. The single biggest depreciation in one day tor over a decade has come forth, resulting in the Rupee hitting a historical low of INR 65.54.
Fears that a potentially inevitable INR 70 against the USD is not too far from the horizon and has resulted in a virtual halt to the local buying, leaving end buyers paralyzed with fear, panic, and confusion, amidst calls for governmental intervention to halt the alarming slump.
Meanwhile, as cash buyer vessels continue to arrive, renegotiations on the shorefront are rife and losses for all concerned are hefty. Indeed, for those cash buyers with unsold inventory, arriving in India is almost the nightmare scenario with a market shifting downwards by the day, losses racking up on vessels the longer they remain unsold, and an increasingly minimal interest to buy becoming a daily norm.
Local steel plate prices also remain in a state of fluctuation that leaves little confidence for local players to make any sense of, and peg any discernible levels, for vessels on offer.
It was therefore no surprise to see no market sales for the week being concluded and it may be quite some time before confidence returns, bringing local buyers back to the bidding tables.
Resultantly, we may well see more than one yard filing for bankruptcy, if this Indian recession continues.
Source: steel guru. 27 August 2013