06 July 2011

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

In a week of decline and fall across local markets, the sales board started to dry up as the 'monsoon' effect began to fully take its toll.

Candidates continued to be proposed and certain sales did register some at surprisingly firm numbers but the overall strategy for both buyers and sellers was to wait and watch to see where to market may be heading or settling.

Such weakening in price may disappoint many owners hoping to cash in when the market was hot only a few weeks back, but it has been in the pipeline for some time now as capacity has waned and the 'tradition' has been for falls at this time of year.

Nevertheless, rumors persist that the Bangladesh market is set to remain open, which could prove a critical factor in propping up the rest of the market rather than seeing further falls. Certain cash buyers have even been willing to take chances on a Bangladesh extension from the court being granted by prices on vessels that may only be considered basis Chittagong delivery.

The reefers continued to find buyers at muted levels into India approaching the USD 450s/LT LDT now (due to vast oversupply of the past month or so, many of the end buyers have simply run out of space). Pakistan once again stood as interested observers on the sidelines waiting to pluck their favorite candidates away from the clutches of their neighbors and China picked up those geographically positioned units regardless of size or type at levels mat began to look increasingly threatening to Indian sub continent buyers this week.

For week 26 of 2011, GMS demo rankings for the week are as below:

USD 495/lt ldt
USD 520/lt ldt
USD 480/lt ldt
USD 475/lt ldt
USD 500/lt ldt
USD 440/lt ldt
USD 460/lt ldt

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

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