With a majority of market vessels presently heading towards Indian shores, due to the comparative inactivity of competing markets in Pakistan and Bangladesh (where lower levels and demand abound due to the onset of the month of Ramadan), end buyers in Alang started to feel the pressure.
Moreover, despite the Indian Rupee performing well under the newly inaugurated, pro business PM, Mr Modi, a correction in levels has been seen to reflect an overall more muted market place.
Such softer offering may prevail throughout the summer months with monsoon season now in full swing. However, if the number of candidates continues to dwindle (in the summer months) and fundamentals remain relatively steady, cash buyers are expecting prices to pick up again going into the fourth quarter of the year.
This is possibly the reason why a few vessels were being committed at relatively firm numbers, despite the slipping sentiment over the last few weeks.
MSC continued their clear-out of older containers with the sale of the MSC CORINNA (14,360 LDT) for a decent USD 495/LT LDT for a very prompt delivery the decent size and favored build being responsible for the price on show.
Likewise the Polsteam controlled panamax bulker SZARE SZEREGI (13,575 LDT) fetched a firm USD 465/LT LDT with the Danish built, size and age all contributing to the good level obtained.
Source: steel guru. 8 July 2014