A rupee consistently trading above 61 to the USD and the cheap import of
Chinese billets has this week seen demand on new units reduced to virtually
nothing. Few enquiries are emerging on available units, with many buyers citing
the upcoming Diwali holidays and extreme volatility in the market as excuses
for not offering.
As a result, it was no surprise to see an empty sales board and the
fewest of any arrivals / beachings in the port report this week.
It is true however, that a lack of available and favoured candidates has
stalled the market somewhat most of the panamax bulkers and larger LDT units
are heading to either Pakistan or Bangladesh and there has been a relative
slowing in the supply of favoured Indian type candidates containers, roros and
MPPs.
With Diwali holidays set to keep most buyers occupied until the end of
October, those with unsold inventory and owners looking to sell their vessels
due to consistently poor charter rates, will be hoping that November brings
with it a greater optimism.
The fact that a large number of yards (over 50% of them) remain empty,
indicates that sentiment should rebound at some point (as long as local
fundamentals remain relatively steady) before the end of the year.
Source: steel guru. 14 October 2014
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