13 July 2011

GMS weekly report on shipbreaking industry for WEEK 27 0f 2011:

Some signs of a market recovery in India gave cash buyers the courage to step up to the offering plate again, bidding on as is and delivered units at some stronger numbers than had been seen during the recent few weeks.

Pakistani buyers were left trailing in India's wake once again waiting for the right units to come along as the "cheery-picking" syndrome remained omnipresent.

The majority of the vessels presently on offer in the market were either bulkers of all sizes (the majority being capes and Panamax size units), reefers (with the high season for trading now nearing an end) and tweens (with a number of en bloc units being fixed this week).

The fact that there is still a great deal of uncertainty in the Bangladeshi market, has not prevented cash buyers in continuing to offer on those market units available. The decision regarding whether the market will be granted an extension to import vessels was set for July 10th 2011, but it has now been put back to the 12th due to a nationwide strike being called on July 11th 2011. However, having seen the historic performance of the recycling industry in terms of their effectiveness of keeping things running along, we fear that any imminent official decision might not be forthcoming for a number of weeks.

China was still presenting strong otters on geographically positioned units, especially those with full spares. Indeed, it is becoming increasingly more sensible for owners to scrap in China with the prevailing levels on show there, rather than bring their units all the way over to the Indian sub continent, especially with the continued uncertainty that the future of the Bangladesh market has in store.

For week 27 of 2011, GMS demo rankings for the week are as below:

Market Sentiment
USD 490/lt ldt
USD 515/11 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) 12 July 2011

No comments: