20 July 2011

GMS weekly report on INDIAN shipbreaking industry for WEEK 28 0f 2011:

The Indian market saw further improvements this week as a hill on recovery, given the previous decline of last month where the diminished prices looked set to become the reality of levels in Alang. There was still a certain detachment between market reality and the levels many cash buyers were offering, with prices on standard drv vessel still below USD 500/LT LDT and tankers some USD 25 higher.

However, well-maintained vessels under good ownership are always likely to receive a premium in the sub continent markets and in WC India more than anvwhere, the country of build proves to be a critical item when considering ship prices.

Several deals were concluded that may have one eve on Bangladesh with the PCTC VIRANA (16,031 LDT) concluded 'as is' Durban with some 490 T of IFO remaining or board for the onward journey. The sister vessel SKAUGRAN was sold to Indian buyers from Korean owners earlier in the year with the important item to note being the wooden as opposed to highly valued steel decks.

In another seemingly crazy move, the Embiricos Panamax bulker SYROS (12,139) went for a price usually reserved for tankers at USD 530/LT LDT (with a full range delivery option to be declared within 25th July) - with the most surprising aspect that a 1981 built China shipbuilding (Taiwan1 bulker received such a strong price despite notoriously good ownership.

2 more PNC sales of dry vessels have reportedly taken place this week with even crazier levels to report. One of the units in question was concluded with a late delivery (reportedly October} and was committed at levels well above USD 540 per tonne. The second unit was concluded with a significant amount of bunkers on board and was fixed closer to the USD 550 per tonne mark. Whether the Indian market will jump up enough to ensure a safe conclusion of these deals remains to be seen.

Source: Steel Guru (Sourced from GMS Weekly). 19 July 2011

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