As the market most affected by the import of cheap Chinese billets, this most recent crash on both the currency and steel prices in India has merely amplified the woes of a stricken industry.
The Indian Rupee has been threatening INR 62 against the US Dollar for much of the past few weeks and steel prices have plummeted upwards of USD 20 per LT, leaving prices stranded in the low USD 400s per LT (a fall of over USD 70 per LT).
Stories of vessels arriving and becoming stuck due to renegotiations / non-performance of buyers (who simply prefer to walk away from deals rather than honor their contracts) are now commonplace.
India has seen declines and falls before, and these games have unfortunately become all too familiar once sentiment starts to turn as severely (as it has recently).
Therefore, it was unsurprising to see no new deals done into India this week, with the focus falling heavily on the struggle to see through existing deliveries especially those done at some of the perplexingly high levels of last month.
Source: steel guru. 19 November 2014http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_46/352984.html