It was another topsy-turvy week in the Indian recycling market with steel prices and the currency both gaining and losing ground. This has led to a glut of end buyers choosing not to offer at all due to the current volatility something aptly illustrated by the fact that almost 50% of yards are currently empty in Alang.
For that reason, there were no market sales to speak of despite the best efforts of cash buyers to unload their inventory into a seemingly firming Indian market. There have also been a greater number of container vessels available for sale and it is now increasingly becoming the task of the cash buyer to find THE hot end buyer in Alang for any given tonnage and work with him to conclusion, rather than risk speculating and losing out heavily.
There were far fewer bulkers, tankers, reefers (due to the high season) or even MPP / tweens / general cargo units to speak of for sale due to improving freight rates.
Container rates though remain poor and certain sizes and types (coupled with the new eco designs) are swiftly making vast swathes of this sector virtually redundant.
By the end of the week, the Indian Rupee was trading at a far more impressive 61.42 to the US Dollar (having spent much of the week trading at INR 62 and higher). Steel prices (which had fluctuated by as much as 10-15/LT LDT back and forth) froze on Friday as truckers went on strike to push for their share from the recent increase in freight rates.
Source: steel guru. 10 December 2013