A large delegation of Indian recyclers arrived in Singapore this week, to attend the Tradewinds Ship recycling conference. Amongst other issues discussed was the controversy surrounding the potential beaching ban for European flagged vessels an issue that solicited much fierce debate from speakers, panelists, and the floor alike.
The current hot market discussions however concern the imminent arrival of, as many as 15 panamax sized containers yet to be sold to Indian buyers. There remains a disconnect between cash buyer asking levels and realities on the ground, with many end buyers seemingly unwilling to budge from given levels, owing to the oversupply of arriving vessels (with more still set to come) from this particular segment.
Many cash buyers are playing a risky game with most units still unsold and set to arrive imminently. Once the vessels are sighted off Alang, this is a surefire sign for end buyers to try and exploit the situation by offering ever lower numbers to supposedly desperate Sellers waiting at anchorage.
However, fundamentals remain encouraging with the Indian Rupee trading mostly in and around a healthier INR 61 to the US Dollar and steady steel prices leaving much ground for optimism. As with Bangladesh, it is the smaller range of vessels from 5 to 12,000 LDT that are drawing in the most buyers due to the lower risks and quicker cutting time associated with importing such units.
Source: steel guru. 12 March 2014