After a stunning past week, India, like Bangladesh, experienced consecutive days of falls on local steel plate prices by almost USD 10 per LT LDT to leave end buyers, momentarily dazed and fearing for new purchases at recent impressive rates.
There were also some concerns on the currency this week as a previously settled Rupee (around the 61 mark) depreciated worryingly to spend much of the week trading around 62 to almost 63 against the US Dollar.
For this reason, demand started to tail off as end buyers chose to wait and watch market developments before committing on new tonnage. Open end buyers and capacity however, is not an issue as there is plenty of space for new vessels locally.
An older sale of a smaller bulker emerged this week as the CATHAY MORSKI (6,973 LDT) was committed for region USD 430/LT LDT. Currency movements and the scrap steel performance will be key in determining the immediate movement of the market this coming week(s) after the remarkably bullish start to the year.
Source: steel guru. 28 January 2014