The show stopping sale of the container ALTAVIA (10,448 LDT) shocked much of the industry. The vessel achieved a remarkable and inconceivable price of USD 535 per LT LDT that smacks of a typical end of the week speculative purchase by the respective cash buyer who has clearly and considerably over-hyped the near future of the Indian recycling market.
At present, local prices are nowhere near reflecting those being offered up by cash buyers and there is some concern on the security of those deals done at highly uncomfortable numbers particularly if the market turns or fails to climb to breakeven levels for the concerned cash buyer.
Notwithstanding, with Diwali holidays on the horizon towards the end of October, this may be a reason for some of the increased anticipation on the buoyancy of levels with end buyers keen to stock their plots before the holiday period commences.
Indeed, many local buyers are feeling somewhat stretched at present levels and are not inclined to improve prices on available units at all.
Local fundamentals remain as volatile as ever, with the Rupee continuing to vacillate around INR 61 against the US Dollar and steel prices improving and declining by as much as USD 5 to USD 10 per LDT each week.
Source: steel guru. 23 September 2014