MUMBAI: 26 JUNE Hopes of increased shipbreaking activities bringing about a semblance of balance between limited demand and over supply of shipping tonnage are not likely to hold good for long as the industry in the sub-continent, considered to be world's largest region for shipbreaking, is fighting a battle amidst low demand and declining prices of steel.
"The situation is rather tight given the disparity in prices that are prevailing in local and foreign markets," said Vishnu Gupta, president of Alang based Ship Recycling Industry Association.
Considering the many factors that determine the performance of the industry, Mr Gupta is not optimistic about the shipbreaking sector coming to the rescue of shipping industry by absorbing some of the extra tonnage that it is saddled with due to heavy influx of newbuildings.
Source: The Economic Times. 27 June 2011