The slew of container vessels now in the market has already begun to put a downward pressure on prices in India. With Bangladesh steel prices having decreased significantly during the week (by as much as USD 10 per LT LDT), the onus will clearly shift to Indian buyers to pick up the slack and import the majority of those vessels already sold to cash buyers.
The position that both, owners and (increasingly concerned) cash buyers with high priced unsold inventory, do not want to be in, is where they are chasing down the market as demand (and subsequently prices) cool off.
Even though the strong performance of the Indian Rupee (trading in and around a comfortable INR 61 to INR 62 to the US Dollar) and a steel price that is fluctuating daily (by about INR 100 to INR 200), the fundamentals for a decent resale currently remain in place.
What is of major concern to those close to the Indian market is an oversupply of similar (many are sister ships) panamax sized container vessels and a dwindling availability of open buyers with adequate LC facilities, plot space, and a demand to buy.
Of the vessels concluded for the week, the eye catcher, for an astonishing USD 495 per LT LDT (less commissions), was the Danaos controlled MARATHONAS (23,326 LDT) of superior Danish build, an excess 70 Tonnes bronze propeller and approximately 250 T bunkers upon arrival. It is understood one specific yard had a demand for exactly this type of unit, hence, the extremely aggressive price on show.
Source: steel guru. 18 February 2014