Another bumper week of sales masked an overall concern locally that the market has peaked ahead of the impending monsoon season, in addition to the announcement of the election outcome (polling for which has already started in several states this week).
As the Indian Rupee spent much of the week trading into the INR 61s against the US Dollar cc finally settling back down to the Rs. 60s (to the relief of many), local steel plate prices also experienced an alarming depreciation this week and witnessed as much as USD 10-15/LT LDT wiped off in the last month alone.
However, that has not distilled the local optimism and the buying continues at some fantastic (albeit unbelievable) levels. One such case in point saw the Polish controlled 1991 built Danish panamax bulker ARMIA KRAJOWA (13,575 LDT) sold at region USD 480 per LT LDT (although with 280 T bunkers included upon delivery).
Italian owners also committed both their RoRo sisterships JOLLY VERDE and JOLLY ROSSO (both 13,696 LDT) as is Jebel Ali, for a very firm USD 500 per LT LDT enbloc (with extra payment for bunkers).
PIL of Singapore continued their clear out of older tonnage, with the sale of the container KOTA WIRAWAN (6,811 LDT) at a speculative USD 513 per LT LDT. The decent age, ownership and size (attracting many end buyers) was responsible for the huge price on show.
Source: Steel Guru. 29 April 2014