GMS weekly report on ship breaking industry for WEEK 6 of 2011:

With Chinese buyers now noticeably absent from the scene over the Chinese New year holidays, India struggled to maintain its buying power of recent months as something of a lull descended on the Indian sub continent.

Over the last few weeks, China had stolen the thunder from Indian buyers with several headline-stealing purchases at firm levels, and their absence from the scene has shifted the focus sharply on to Indian buyers who have neither the desire nor the capacity to absorb the market tonnage on offer.

Finally, as Pakistan continues to cherry pick only those units deemed worthwhile, Bangladesh remains crucially absent from the scene with no immediate signs of any resolution.

The candidates kept on coming though mostly on the dry front, as Owners continued to feel the pinch with charter rates still struggling. This year has seen a plethora of dry candidates concluded mostly on the Capsize and Panamax bulker front, in comparison with last year, which was dominated mostly by tankers of all shapes and sizes.

Several cash buyers, having paid big on numerous large units amidst some hugely speculative moves, have had to face the reality in levels. Fortunately for some, on the as is vessels acquired, Chinese buyers were there to pick up some of the slack from the Indian subcontinent falls. However, some may consider holding on to a few of those high priced as is deals before a firming in the market once again pushes the deals back into the green.

Source: SteelGuru. (Sourced from GMS Weekly). 08 Feb 2011

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