With Diwali holidays
underway in India this week, it became very difficult to talk on new units,
with most cash buyers speculating on renewed demand and an upswing in local
levels upon official reopening next week.
With several vessels
still unsold, it will be a nerw time for cash buvers on Mondav morning as they
await news on steel prices and the currency situation, to ascertain whether
various gambles have paid off or not. The past month at least has seen cash
buyers speculating to the extreme with most of these punts backfiring and
losing a lot of money for the concerned parties.
It has been very rare
indeed for both the currency and the steel prices to perform well in tandem
this year, which is why the Indian market has not been operating on full capacity
as yet.
There were some concerns
with the Rupee this week as well linked to the US debt ceiling and a second
consecutive month of interest rate hikes (with little room for cuts). Lower
overall projections for growth paint a gloomy picture for the Rupee, even if
local steel plate prices continue to perform relatively well, this should urge
some greater caution on local pricing in the coming month or so.
A lack of sales both to
yards and by cash buyers can largely be attributed to the holidays. It will be
interesting to see where the market opens up next week and how sentiment
prevails after an altogether encouraging end to October.
Source:
steel guru. 13 November 2013
http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_44/328042.html
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