With the budget announcement just days away and local yards having taken in their fair share of deliveries over recent weeks, meaningful negotiations with local buyers have all but ceased over the course of last week.
With all vessels now working basis post-budget delivery, local buyers are either unwilling to offer, or are indicating substantially lower levels in order to account for any unfavorable announcement(s) arising from the budget.
Whether this year’s annual budget brings about any taxes that could negatively affect prices, remains to be seen, however, with Indian offers at or above USD 500 per LT, there is more than just tax increases that local buyers need to be wary of.
Source: steel guru. 5 June 2014