The show stopping sale of the container ALTAVIA (10,448 LDT) shocked much
of the industry. The vessel achieved a remarkable and inconceivable price of
USD 535 per LT LDT that smacks of a typical end of the week speculative
purchase by the respective cash buyer who has clearly and considerably
over-hyped the near future of the Indian recycling market.
At present, local prices are nowhere near reflecting those being offered
up by cash buyers and there is some concern on the security of those deals done
at highly uncomfortable numbers particularly if the market turns or fails to
climb to breakeven levels for the concerned cash buyer.
Notwithstanding, with Diwali holidays on the horizon towards the end of
October, this may be a reason for some of the increased anticipation on the
buoyancy of levels with end buyers keen to stock their plots before the holiday
period commences.
Indeed, many local buyers are feeling somewhat stretched at present
levels and are not inclined to improve prices on available units at all.
Local fundamentals remain as volatile as ever, with the Rupee continuing
to vacillate around INR 61 against the US Dollar and steel prices improving and
declining by as much as USD 5 to USD 10 per LDT each week.
Source: steel guru. 23 September 2014
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