With the Indian
budget being announced this week, very few surprises came to pass in the ship
recycling sector i.e. no increases for import taxes (as was rumored / feared
prior to the announcement) led to a momentary mid-week surge of optimism as a
few deals were committed.
However, the
gloom had fully sunk in once again come the end of the week as the currency
slid back to a perilous Rs. 54.90 against the U.S. Dollar - dangerously close
to the 55 levels that have caused so much consternation to end buyers over the
past year or so.
Nonetheless,
several sales were confirmed over the course of the week, with two Danaos
controlled containers fetching firm numbers. The PRIDE (14,943 LDT) and the
HENRY (14,158 LDT) both fetched numbers in the 440s/LT LDT for a delivery India
(showing just how far the market has come off since the highs of one month ago
when levels into the high 460s and even 470s/LT LDT were seen on earlier container
sales).
In the other
sale for the week, the bulker VALPOLICELLA (9,387 LDT) also received an
impressive USD 422/LT LDT.
If the currency
can improve in the coming week, all are hoping that India can push on once
again to ignite some post budget bullishness.
Source: steelguru. 5 March 2013
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