A curious week of declines and falls was punctuated by the sale of two containers at exceptional (and highly speculative) levels based on today's sentiment.
The Yang Ming panamax sized container YM NORTH (19,415 LDT) fetched a superlative USD 491 per LT LDT 'as is' Colombo with no guarantees of remaining bunkers (which were expected to be about 250 tonnes to 300 tonnes ROB sufficient for the voyage to its intended recycling yard). The concerned cash buyer may be hoping to play the equidistant Bangladesh and Indian markets, in order to extract the best possible price.
Zim of Israel, likewise committed the ZIM JAMAICA (16,900 LDT) for a very firm USD 510 per tonne LDT. The vessel is due to discharge West Coast India and is expected to deliver around the end of September. The relevant cash buyer seems to be taking a forward position, with the Indian market not offering prices at these sorts of levels at present and the Pakistani market not that interested in acquiring containers due to beaching draft issues.
Meanwhile, the currency spent much of the week trading above INR 61 against the US Dollar, with a small recovery seen towards the end of the week. The outlook for the months ahead however remains bleak with almost USD 20 to USD 25 per LT LDT knocked off the pricing in the past few weeks alone (due to sliding scrap steel prices and an unexpected depreciation of the Indian Rupee).
Source: steel guru. 19 August 2014