The Indian market, despite facing strong downward pressures (thanks to the monsoon season and the weakening Indian Rupee) provided a surprising run (in terms of local sales) this week. A total of 6 (market) ships were concluded into India this week and nearly all of them appear to have been concluded at the top of (or even higher than) what the local market is likely willing to pay at present.
Taking in the highest numbers of the week was chemical tanker THERESA MARS, with 502 tonnes of stainless steel onboard; the vessel reportedly fetched a whopping USD 720 per tonne.
Next in line were the reefers BALTIC NAVIGATOR and BALTIC NOVEL, reportedly taking in region USD 500/LT each. The 72 tons of aluminum onboard helping the vessels attain the aggressive price on show.
Trailing the end of the sales chart were container MSC JADE and MPP DANNY ROSE at USD 485 per LT respectively, and LPG GAZ PIONEER (with spare propeller blades) bringing in USD 480 per LT basis as is Fujairah.
Given the levels at which sales are being concluded, it is evident that cash buyers continue to take punts on (a weakening) market and are offering prices that appear to be beyond breakeven levels from local offerings. Considering the prevailing market conditions, it is perhaps a gamble on part of the owners as well at taking a bite of the speculative priced pie.
Source: steel guru. 25 June 2014