As speculation fever once again gripped the Indian recycling market several sales were concluded to bullish cash buyers at increasingly and seeming (over) optimistic numbers.

With the Indian budget due in early March, the demand locally is starting to reflect these stronger numbers - for deliveries within February in particular.

A raft of container vessels have gone at top numbers in recent weeks - the UASC vessel KHALID IBN AL WALEED (12,858 LDT) being the most recent going for USD 514/LT LDT 'as is' Khor Fakkan with sufficient fuel for the voyage to WC India.

Prices on dry vessels seemed to be edging up towards the 500/LT LDT mark as the full spares grain trader SEA DREAM (7,296 LDT) saw USD 500/LT LDT. The good specs on that particular vessel saw it receive a premium - most standard bulkers would be priced L'SD 10-15/LT LDT lower by today's market.

As the number of candidates though showed few signs of diminishing and with China back online next week as well with many owners keen to cash in on their older vessels it may be worth sounding a note of caution on levels pushing ever upwards.

The fourth quarter of 2011 and the damage suffered by virtually all cash buyers should serve ample warning of that.

(Sourced from GMS Weekly)