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 2013http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_44/328042.html