The soaring sentiment that has seen market levels push on to unexpected and extraordinary highs, was sustained for yet another week with another large panamax container vessel concluded at exceedingly firm levels.
The Danaos controlled COMMODORE (22,148 LDT) achieved a fantastic USD 510/LT LDT for delivery India with the size (fitting the demand for one specific yard), good ownership and whopping 85 T bronze propeller responsible for the exceptional price on show.
It was also another fraught week of competition with cash buyers battling it out amongst themselves to secure market tonnage and invariably paying well over the odds a dangerous strategy if the market takes a turn and less scrupulous buyers are asked (expected) to perform on their obligations.
There is the feeling however, that as summer approaches and monsoon season begins, the market has essentially peaked. The supply of vessels remains steady and many of the larger buyers (in terms of LC limits and yard capacity) able to take panamax sized containers have been booked with units and demand is expected to dampen as a result.
The currency spent another steady week trading in and around Rs. 60 against the US Dollar and steel prices paired recent gains with a couple of days of consecutive losses. Notwithstanding, sentiment remains healthy and prices are expected to stay steady (at least for the next week or so) as long as the fundamentals remain stable.
Source: Steel Guru. 15 April 2014