In perhaps the least surprising news of the year, the Indian market finally reached its breaking point and the digits started to tumble such that by the end of the week brokers, owners and cash buyers alike were faced with a new reality on levels.
Quite what the new levels are, is difficult to tell since there have been very few sales to report, in order to peg a new reality on prices. What is clear is that dry vessels are now going below USD 500/LT LDT and prices on wet vessels managing to keep just above the watershed 500/LT LDT mark.
With over 45 vessels arriving Alang already this month (and not even that many open buyers to take on the vessels), it is hardly surprising that said breaking point has been reached.
Those unfortunate owners who had brought vessels onto the market just as the numbers started to dip were facing dithering levels by the day. The last thing anybody wants is to be chasing down the market and so the advice at this stage is just to hold tight, wait and watch before the next firm sales emerge in order to gauge exactly which direction the market is heading in.
This week, general cargo vessel SKOGALAND (7,093 LDT) was sold for USD 465/LT LDT as is Kakinada
Market sales reported –
Vessel Name Type LDT Reported Price
SKOGALAND Gen Cargo 7,093 USD 465/LT LDT (as is Kakinada
Source: Steel Guru (Sourced from GMS Weekly). Tuesday, 31 May 2011
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