By the end of the week, there were signs that sentiment had started to turn in India with the Indian Rupee trading at a healthy INR 61.4 against the US Dollar and with steel prices clawing back some of the ground lost over the previous few weeks.
Much of the tonnage being offered in the market was not really of interest to Indian buyers their preferred containers and smaller LDT / beam units were not readily available. The majority of the capesize bulkers seem destined for either Chittagong or Gadani shores, a sector that is providing the steadiest supply at present.
Capacity remains excellent locally with many end users having (luckily) abstained from filling their plots whilst prices tumbled by around USD 100/LDT (a 20% correction!).
As a result,there were few market sales to speak of. However, if sentiment and demand pick up as expected, then that will change in the coming weeks.
Most end buyers prefer smaller LDT tonnage due to the constant volatility in the Indian market and the fact that they can cut smaller units in quicker time in case the market is falling, but if fundamentals and prices remain at workable levels then this mentality may change in order to secure available tonnage.
Source: steel guru. 29 Jan 2015