A bumper week on the sales front saw the Indian market bag four high profile and high LDT containers at some impressive numbers. Much of this appeared to be on the back of cash buyer speculation, as the truckers strike that had beset the market at the end of last week persisted for most of this week as well, leaving any reading of steel prices redundant.
The currency has begun to settle again in and around Rs. 61 to the USD (with some even speculating it could go down into the 50s) as local fundamentals showed signs of improving. A brief spike on the steel prices was also seen at the end of the week as the truckers strike came to an end and business resumed as normal in Alang.
The container vessels in question saw the DATO (17,600 LDT), KADIK (23,857 LDT) and PATAI (19,631 LDT) all sold to one bullish cash buyer for USD 444/LT LDT for a delivery WC India. It is understood that the same cash buyer also purchased the APL SPINEL (21,574 LDT) for an incredible USD 454/LT LDT ‘as is’ Singapore with 650 T bunkers remaining on board at the time of delivery. Owing to less than impressive (barely breakeven) charter levels, containers certainly appear to be the flavor of the moment.
The other sale for the week saw the Nasco controlled tween XIANG FU MEN (8,190 LDT) sold for a decent USD 420/LT LDT (with inward clearance fees for buyers), as owners continued their clearout of older tonnage.
Source: steel guru. 17 December 2013