A Disastrous Week in The Indian Market Left Cash Buyers

A disastrous week in the Indian market left cash buyers, end buyers and all those involved in the industry reeling once again. It has been such a temperamental year in Alang that speculation has become a huge risk today - just when it seems that prices and sentiment is on the up, a sharp setback suddenly shatters all of that.

The currency has begun to trade at excess 55 to the rupee once again and steel prices, for some of the marginal gains made during the week, had lost all of that by Friday.

With still a huge amount of inventory waiting at anchorage to begin inward clearance formalities, a backlog of vessels is starting to build up and owners should be prepared to accept delays in deliveries. Indeed, certain less scrupulous buyers may be eyeing this latest reversal in price as a means to delay LC openings and look for frivolous means to renegotiate on price - a strong and experienced cash buyer presence is therefore essential to ensure deliveries move in a timely and smooth fashion.

Of the market sales concluded, the Ukrainian built General Cargo vessel ILYA (5,074 LDT) was of note at USD 413/LT LDT as was the gas free for hot works aframax tanker CONTINENTAL (14,164 LDT) at USD 430/LT LDT for guaranteed green recycling at an ISO 30,000 certified yard - from the same owners as sister ship PIONEER sold earlier this year to WC India.

Market sales reported