The bulk of the market sales were concluded into India this week, with some extremely speculative prices seen by over-zealous cash buyers speculation returns.
As the Rupee made some extraordinary strides over the course of the week (finishing below INR 60 for the first time in over a year) and optimism swept through the industry local levels were still not reflecting prices being offered up by cash buyers on international tonnage.
Just one poor day of reversals on the Rupee or significantly depreciating steel plate prices could see local sentiments and prices reverse very quickly. Thus, it is a risky strategy being employed by many, just to get their hands on available tonnage and owners need to be aware of simply taking the top dollar.
Of the sales concluded this week, the Lomar controlled ATHENS TRADER (10,37 LDT) caught the headlines at USD 495/LT LDT less comms ‘as is’ Jebel Ali with 120 bunkers remaining on board.
Similarly, PIL owned KOTA WIJAYA (6,815 LDT) fetched an enormous USD 525 per LT LDT with 350 T bunkers upon delivery (about 20 USD/LDT worth of value) the smaller size, bunkers and decent ownership secured the high prices. However, there was still the feeling that these levels were at least about USD 10-15/LDT away from reality.
In other sales, the Egyptian owned AMIRA MARIAM (5,853 LDT) was sold for a firm USD 465/LT LDT for prompt delivery Alang and the MPP converted from container AQUA LUNA (4,950 LDT) achieved a decent USD 480 per LT LDT.
Source: steel guru. 1 April 2014