Few early signs emerged this week to suggest some sort of recovery may be in motion in the Indian market. The appointment of a new RBI Governor has seen the currency recover during the week from excess INR 68 to the US Dollar, back down to INR 66 or so, as the week ended.
As well as some (marginal) gains on the steel market (to balance out some of the catastrophic currency losses), the future is looking a little less bleak for the local ship recycling industry, after the deeply felt traumas of the past month.
There is the feeling that many end buyers are happy to acquire again at the current levels and that a certain confidence is percolating though the local mindset yet the problem will be convincing owners and cash buvers to sell at these levels.
Competing markets will also have a sav in where market tonnage ends up with the increasingly bullish Chinese yards or at Pakistan yards, where thev remain keen to acquire at the right levels. Improvements in freight rates mav also see owners continue to trade vessels are even opt for drv-docking - something that mav see the Alang market starved of tonnage in the immediate future at least.
Source: Steel Guru. 11 September 2013