As perhaps the only Indian sub-continent market talking any sense on numbers at present, it was no surprise to see one or two deals (both market and private) committed to Indian buyers this week.
Steel prices, despite fluctuating heavily on a daily basis, made up the losses of the previous week and the Indian Rupee too has been trading in and around a settled INR 61 against the US Dollar for some time now.
There were still eyebrows raised at the purchase of the container vessel CAP ROCA (17,655 LDT) for an extraordinary USD 490 per LT LDT (for a January delivery). Despite the decent specs of the vessel, this is still at least USD 20 per LDT above today’s market levels and it seems as though the relevant cash buyer is taking a forward position on improved prices come the New Year.
This is an interesting position to take given the global gloom surrounding commodity prices, stock markets, freight rates, plunging bunker prices and of course those Chinese steel exports.
Source: steel guru. 3 December 2014http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_48/353689.html