With elections already underway in various states, an optimism that the favorite candidate, Mr Modi, would be elected by a landslide, swept through the country, giving both the currency and steel prices a positive outlook.
The Indian market furthermore did not have the budgetary restrictions of either Pakistan or Bangladesh and many end buyers were willing to speculate at levels above the market on available vessels, thereby prompting some wild numbers from cash buyers on international tonnage.
The decent sized panamax bulker YU JIE (10,876 LDT) from the Winning Group of Singapore (who have sold as many as eight capesize and panamax units for recycling over the past year or so) was committed for a fantastic USD 502 per LT LDT basis delivery Indian sub continent range with 350 tonnes to 450 tonnes of bunkers remaining on board. While the final destination of the vessel remains unconfirmed, with India currently paying the best prices leads to the logical presumption that the vessel will end up here Panamax sold.
Moreover, with the bunker value almost USD 15 per LT LDT and the 10kldt size likely to attract many buyers, the speculative cash buyer has clearly taken a chance that Indian market will be able to justify the price on show, particularly with a May delivery likely (pre budgets in both Pakistan and Bangladesh).
Source: Steel Guru. 6 May 2014