16 August 2011

GMS weekly report on ShipBreaking industry for WEEK 32 of 2011:

Week Highlights:

Ø      Alarming falls echo international market sentiment.
Ø      Bangladesh order finally through
Ø      Hot Indian streak- at an end
Ø      India still leads the market

Volatility Reigns!

The market continued to see some alarming falls in levels across the board, in the wake of recent international market turmoil, which left the recycling sector in a state of uncertainty as the week came to an end. Consequently, most buyers in Bangladesh, India, Pakistan and even China, were unwilling to commit to new units for fears of further falls in the days and possibly weeks ahead.

Moreover, with the month of Ramadan presently underway in both Pakistan and Bangladesh, the appetite to enter into negotiations has left the end buyers firmly planted in the driving seat, as far as dictating levels for fresh tonnage that continues to pour into the market.

Meanwhile, Bangladeshi recyclers finally received the certified copy of the court order this week that permits local recyclers to import vessels up until October 12th 2011. Thereafter, another extension will have to be obtained from the local courts in order to keep business as usual.

On the other side, India's recent fiery purchasing streak seemed to be coming to an end as many owners who had committed their units at top levels now seem to be fearing the upcoming arrival/delivery of their units at Indian shores considering the tricks that are pulled in a falling market, in order to get a reduction in price.

For week 32 of 2011, GMS demo rankings for the week are as below:

Market Sentiment
Gen Cargo Prices
Tanker Prices
USD5010/lt ldt
USD 525/lt ldt
USD 500/lt ldt
USD 525/lt ldt
USD 485/lt ldt
USD510/lt ldt
USD 450/lt ldt
USD 465/lt ldt

Source: Steel Guru (Sourced from GMS Weekly). 16 August 2011

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