The Indian market endured
another highly turbulent week, which bv the close had seen steel prices come
off bv almost USD 15-20/LT LDT and saw the Indian Rupee tumbling down and
trading at a near-historical low for the year at INR 55.65 to the US Dollar.
Whilst the local steel
plate prices have been particularly volatile of late, the latest news regarding
the currency will certainly knock end buyers back particularly given the
multitude of high priced deals done and the fact that, as it stands, all end
buyers are currently losing significant money on their recent fixtures.
Indeed, the pressure
started to tell on certain cash buyers as well, as vet more deals started to
stall - facing either renegotiations or failure altogether. Following the
failed deal of the Turkish owned handy size bulker SUR (6/170 LDT) last week,
the MPP LUGANO (9,055 LDT) was also put back on the market after failing to one
buyer at region LJSD 435/LT LDT.
It may be that end buyers
and cash buyers would rather see some stability in the market and focus on
delivering existing high priced inventories, rather than plug ahead with new deals
particularly with many owners seemingly intent on asking the previous week's
prices.
Source: steel guru. 28 May 2013
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