The recent hot streak
on containers in India continued for yet another week with some more sales
taking place at hefty numbers. The pick of these saw the Danaos controlled
MESSOLOGI (23,740 LDT) committed for a very firm USD 515 per LT LDT basis a
prompt.
WC India delivery, the
fourth sale from the group this year. The good Danish build, heavy 72-Ton
bronze propeller and likely excellent condition of the vessel saw the decent
premium achieved as local buyers once again displayed their aggression on
decent sized container units.
Meanwhile, the
currency continues to impress and even spent part of the week trading below INR
60 against the US Dollar something that gave end buyers sufficient confidence
to offer ever increasing numbers on available units.
Whilst supply also
remains steady, the scrap steel prices have fluctuated between the usual range
of INR 100 to INR 200 per LDT up and down (USD 2 to 4 per LDT) on a daily
basis. With monsoon season approaching in June and election results set to be
announced soon, it will be interesting to see if current levels persist going
into the summer.
Many analysts are
suggesting that just one piece of negative news such as anything but the highly
anticipated win for Mr Modi in the elections could turn sentiment and
subsequently prices spiraling downwards once again.
Source: Steel guru. 14
May 2014
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