The Indian market may be (increasingly) expected to absorb a majority of the market tonnage given the weakness in levels currently being experienced in both Pakistan and Bangladesh, coupled with the fact that both those markets are set to be off on Ramadan holidays for one month.
It was no surprise therefore, to see the two market sales of note this week concluded into the Indian market. The panamax bulker XING PENG DA (10,989 LDT) was fixed for a healthy USD 490 per LT LDT with 480 T bunkers on board upon delivery (Sellers chose to make the voyage across from Chittagong where she has been discharging due to the lower levels/interest on offer there).
In the fourth sale from the group in a space of two weeks, the Baltic reefer BALTIC STRAIT (7,376 LDT) was committed for a very decent USD 500 per LT LDT, with owners choosing to cash in on the obvious demand and excellent prices for such units, largely down the amenable size and 72 T aluminum on board. While the price is unconfirmed at the time of writing, we do expect the level to have fetched, at minimum, what the others in the fleet were fixed for.
Prices for high spec units (bunkers, non ferrous, favored size etc.) therefore seem to be remaining firm and it may be hoped that an expected dearth of units over the summer months can invigorate prices and demand once again, or at the very minimum, stabilize them at the current levels.
In contrast to the aforementioned sales prices, Indian levels have not impressed for another week, as the Rupee continues trading into the 60s against the USD, steel prices continuing to fluctuate daily, and appetite to acquire remains largely subdued.
Source: steel guru. 1 July 2014