The Indian Rupee continued its heartening gains of late, to finish the week at a much healthier INR 63.5 to the US Dollar. The appointment of the new RBI governor seems to have done wonders for the currency in just under two weeks as the Rupee has appreciated about 2.6% in the last week alone.
Steel prices were however, the major concern, as some alarming losses saw INR 1,000 per metric ton (about USD 16/LT LDT) wiped off in the space of 3 to 4 days. Such a slump has left many end buyers once again confused as to the direction of the markets and many cash buyer vessels remaining unsold as a result, with offers still tentative at best.
India still managed to position itself as the top sub continent market as the gains on the currency started to breed some confidence amongst local buyers again.
Two eye catching sales were concluded for the week with the Danaos controlled larger container HOPE (19,861 LDT) was committed for a firm USD 408/LT LDT. Even more extraordinarily, the SEABOXER (7,590 LDT) was fixed for an almost unthinkable L7SD 427/LT LDT (including 220 T bunkers on board upon delivery).
Interestingly both vessels remain unsold locally, indicating that the cash buyers may be gambling on a market upturn in the coming weeks, a dangerous tactic given the extent of reversals in the steel prices this week as well as the poor performance of the Indian market for the last several months.
Source: Steel Guru. 17 September 2013http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_37/325029.html