A week of (solid) steel price gains and currency stability underpinned some sensational (and perhaps speculative) offerings from cash buyers into India 20 bucks up.
Prices offered surged upwards by USD 20 per LT LDT with all market fundamentals positive as cash buyers competed heavily on the dwindling number of vessels available for sale.
If these heady numbers persist, it may even encourage owners of vessels due for surveys, or nearing the end of charters to book a decent rate and sell. However, if there are lessons to be learnt from the past two years of instability and volatility in the Indian market a comparative downturn in fortunes is never that far away.
Of the vessels committed this week, the smaller general cargo and container types LTI INTEGRITY (4,387 LDT) and FILIPPA C (6,648 LDT) fetched an impressive USD 460 per LT LDT less comms and 445 per LT LDT NETT of comms respectively. The smaller size and beam ensuring a huge array of Alang buyers would have been interested to acquire the units in question.
Additionally, the Russian built RoRo VINNI (10,692 LDT), with excess 2,800 T solid concrete permanent ballast, likewise fetched an enormous USD 470 per LT LDT for green recycling. The decent size, type, and favored Russian build (meaning plenty of non ferrous likely to be on board) are responsible for the excellent price on show.
Source: steel guru. 25 January 2014