The Indian market has
been reeling for the best part of two weeks, due to the sudden depreciation of
the Indian Rupee, coupled with some dramatic falls on the scrap steel prices.
Consequently, there is little doubt that a new reality on price, at least USD
20 per LT LDT off the peaks of the past few months, is just around the corner.
Part of the problem has
been this import of cheap Chinese steel that has seen many yards undercut on
their own inventory. As a result, there has been a complete reversal in the
bullish sentiment that had characterized the third quarter and the early part of
this year.
A cagey atmosphere has
begun to prevail at the waterfront, with renegotiations and needless questions
raised on incoming vessels, now becoming a regular occurrence.
Those cash buyers who
rely on end user finance can only transfer their issues to the owners, whilst
it is the role of the strong cash buyer who can fight frivolous claims and
still get vessels smoothly delivered, despite market turmoil.
Whilst there were few
market sales to speak of, those cash buyers who have agreed deals to India and
have high priced unsold vessels in hand are desperately seeking alternatives to
what is the worst placed of all sub continent markets at present.
Source: steel guru. 21 October 2014
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