GMS weekly report on INDIA shipbreaking industry for WEEK 35 of 2011:

• Majority of dry fetching over 500/Ton
• Confusing signs
• Steel plate price and Indian rupee weaken

Game On:

Cash Buyers remained hard at work at the bidding tables pegging down tonnage at relatively strong levels, destined for the shores of India. With a plethora of dry tonnage on offer and most prices well above USD 500 per tonne mark, there were plenty of willing owners ready to fix away their units for the right price.

However, the elephant in the room is the question that lingers on in everyone's mind is what is it driving up the prices?

Some of the usual suspects to blame (as stated above) could be the end of the Monsoon season, a likely firming from Bangladesh that could drive Indian prices up, mixed in with a healthy dose of speculation on pari of the Cash Buyers. However, the primary drivers behind the levels ie stability of the Indian Rupee (vs the US Dollar) local steel plate prices, both have remained significantly unchanged over the recent weeks to have any positive/noteworthy effect on the prices of ships.

Notwithstanding the puzzle, a number of sales have taken place into the local market at decent numbers i.e. all well above the USD 500/Ton mark. Of the sales, noteworthy was M/T CARIBIC where the Buyers concluded at an outrageous price of USD 590/Ton. Other than being built at a good yard (which fetches a premium similar to Kherson built tonnage) and Stainless Steel lines, only the Cash Buyer who paid the whopper of a price could justify the reason. Similar reasons have driven the sale of Bulker ST. ANNA that fetched an incredibly high price given the market conditions.

Notwithstanding, the market does appear to be gearing up for some positive movement in the near future.

Source: GMS Weekly. Tuesday, 06 September 2011 

http://download.hellenicshippingnews.com/pdf/September%2002,%202011.pdf