GMS weekly report on INDIAN shipbreaking industry for WEEK 26 of 2011:

After the relative binge on units over the past week in which almost five reefers were concluded, this week saw a relative calming on the buying front with only one market sale to report.

Star Reefers continued their clear out of older tonnage as the SCOTTISH STAR (5,924 LDT) followed the same path as the sister ship CANTERBURY STAR, and found buyers willing to take her 'as is' Fujairah for what appears to be a relatively firm USD 465/LT LDT. The good country of build (Belfast) and presence of certain valuable non ferrous items and spares contributed to the high price on show.

With the high season at an end, a swathe of reefers has hit the market in recent weeks, with a huge number being committed to either China or West Coast India (the only real reefer markets). Prices are now well below USD 500/LT LDT and even approaching USD 450/LT LDT for India with nearer to USD 400/LT LDT now looking likely for China.

The overall tendency in the market has been on a downward trend of late with falls of some LJSD 10-15/LT LDT rocking the market in the first few days of the week before an eerie calm descended on proceedings as buyers surveyed the market unwilling to commit to new units.

Source: Steel Guru (Sourced from GMS Weekly). Wednesday, 06 July 2011

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