The soaring sentiment
that has seen market levels push on to unexpected and extraordinary highs, was
sustained for yet another week with another large panamax container vessel
concluded at exceedingly firm levels.
The Danaos controlled
COMMODORE (22,148 LDT) achieved a fantastic USD 510/LT LDT for delivery India
with the size (fitting the demand for one specific yard), good ownership and
whopping 85 T bronze propeller responsible for the exceptional price on show.
It was also another
fraught week of competition with cash buyers battling it out amongst themselves
to secure market tonnage and invariably paying well over the odds a dangerous
strategy if the market takes a turn and less scrupulous buyers are asked
(expected) to perform on their obligations.
There is the feeling
however, that as summer approaches and monsoon season begins, the market has
essentially peaked. The supply of vessels remains steady and many of the larger
buyers (in terms of LC limits and yard capacity) able to take panamax sized
containers have been booked with units and demand is expected to dampen as a
result.
The currency spent
another steady week trading in and around Rs. 60 against the US Dollar and
steel prices paired recent gains with a couple of days of consecutive losses.
Notwithstanding, sentiment remains healthy and prices are expected to stay
steady (at least for the next week or so) as long as the fundamentals remain
stable.
Source: Steel Guru. 15
April 2014
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