07 September 2011

GMS weekly report on ShipBreaking industry for WEEK 35 of 2011:

  • Sense of return
  • Several sales reported
  • China anchored
  • Market rankings hold
Definitely Maybe………

As was the case from last week, the Indian market continued to show signs of promise (in terms of potentially firming prices), but why is the question that begs to be answered. For the most part, a low but relatively steady local steel plate price mixed with the (upcoming) end of the monsoon season appears to be driving force behind the speculation of a few cash buyers that the Indian market is potentially set for a rebound.

But the big question is, will it?

On opposite sides, Bangladeshi buyers, akin to their Pakistani counterparts, remained isolated enough from the bidding tables such that no meaningful market sales can be reported from their respective ends (though Bangladesh did have at least one vessel committed locally basis end September delivery). However, as with anticipation brewing from India, the upcoming end of the monsoons along with the end of the religious month of Ramadan this week could translate into an eagerness to buy as September progresses on.

The Chinese market is the only one where prices remain as steady as can be, keeping demand and interest anchored at levels that have been unchanged for the most part.

As such, on the sales-front, both India and China the week have their fair share of sales to report, with a majority of the units once again plotting their course towards West Coast India.

With prices relatively unchanged, week 35 of the GMS demo rankings is as below:

Market Sentiment
Gen Cargo Prices
Tanker Prices
USD 505/lt kit
USD 525/lt ldt
USD 500/lt ldt
USD 525/lt ldt
USD 485/lt ldt
USD 450/lt ldt
USD 465/lt ldt

Source: GMS Weekly. Tuesday, 06 September 2011 

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