From record highs of the Indian Rupee to the landslide election victory of the pro business Mr Modi, it has been quite the year for the Indian markets, with ups and downs on the currency & local steel plate prices on a daily basis (if not hourly).
In general, we have seen prices fluctuate within a USD 50/LT LDT price range with alarm bells tending to ring amongst local buyers once prices cross the USD 500 per LT LDT on dry units.
As a result, of all the recycling destinations (especially in the sub continent), this has been the toughest market to call out as pricing and sentiment appears to change within hours.
Subsequently, most cash buyers have been affected, not only when securing tonnage at speculative rates but also on back to back deals, due to the frequent uncertainty of the local market and subsequent indecisiveness of local buyers.
During the Q3 of the year, from July to September, a total of 63 vessels have been beached in Alang (over half a million LDT) well down from the first two quarters of the year when a huge volume (particularly of panamax sized containers) were imported.
Despite the rupee touching 62 against the US Dollar and overall sentiment remaining negative pre-Diwali holidays, we continue to witness aggressive cash buyers speculating on local offerings.
Source: steel guru. 07 Oct 2014