A number of market sales registered for the week many of them reefers as the high season ended and cargoes became harder to come by. Yet, market levels hardly impressed for another week with the monsoon season now fully underway and capacity becoming an increasing issue.
However, for the right levels, there were buyers willing to take a punt on the market and two high profile sales registered. The Chinese owned FU RONG (24,295 LDT) went to the same buyer that had acquired three previous capes - the ETERNAL STAR, JIA FU STAR and GLORY SHENZHEN, in some-what of a buying binge.
The MELBOL7RNE MAJESTY (12,587 LDT) likewise achieved something of an unrealistic price with some fuel and decent specs the reason for the remarkably high USD 507/LT LDT on show. However, being an ex wet-trader and supposedly having significant amounts of non-ferrous yet onboard, the vessel fetched a better than decent price, given the present market predicament.
The prevailing view is mat levels may have some way to fall 3^et, even though there seems to be a certain (suspended) pause in the decline of market levels at the moment. Whilst it is felt mat levels will not dip below USD 450/LT LDT in the near future, prices on dry vessels are now well below USD 500/LT LDT with wet units priced just above USD 500/LT LDT.
Source: Steel Guru (Sourced from GMS Weekly). Tuesday, 28 June 2011