As the best placed market in the sub-continent, there was a chance for Indian buyers to get back to acquiring vessels this week. A certain stability has entered the Indian currency as well as the local steel plate price prices. Yet, there is a section of end buyers who remain reluctant to offer on fresh tonnage, perhaps fearful of further falls.
A number of container vessels from cash buyer inventories were therefore concluded at decent rates and encouragingly, the number of enquiries also increased. This will hopefully have a knock on effect in both Pakistan and Bangladesh (who tend to follow Indian pricing rather than lead from the front).
The Indian Rupee spent much of the week trading below INR 62 against the US Dollar and local steel plate prices gained some ground following the crash of previous weeks, which had seen almost USD 20 per LDT wiped off the price.
Capacity on the ground also remains healthy with over 50% of the local yards empty and ready to take tonnage at prevailing rates. Although many end buyers are still reluctant to take the plunge just yet and are waiting for several weeks of stability before getting back to the buying again.
Source: steel guru. 9 December 2014