As the best placed
market in the sub-continent, there was a chance for Indian buyers to get back
to acquiring vessels this week. A certain stability has entered the Indian
currency as well as the local steel plate price prices. Yet, there is a section
of end buyers who remain reluctant to offer on fresh tonnage, perhaps fearful
of further falls.
A number of container
vessels from cash buyer inventories were therefore concluded at decent rates
and encouragingly, the number of enquiries also increased. This will hopefully
have a knock on effect in both Pakistan and Bangladesh (who tend to follow
Indian pricing rather than lead from the front).
The Indian Rupee spent
much of the week trading below INR 62 against the US Dollar and local steel
plate prices gained some ground following the crash of previous weeks, which
had seen almost USD 20 per LDT wiped off the price.
Capacity on the ground
also remains healthy with over 50% of the local yards empty and ready to take
tonnage at prevailing rates. Although many end buyers are still reluctant to
take the plunge just yet and are waiting for several weeks of stability before
getting back to the buying again.
Source: steel guru. 9
December 2014
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