27 September 2011

GMS weekly report on shipbreaking industry for WEEK 38 of 2011:

As stock markets across the globe once again took a battering (particularly in the East), so too did the international ship recycling markets suffer something of a dramatic week.

Steel prices rose and fell for the week amidst continuing currency concerns in the largest market India as the Indian Rupee once again lost major ground against the US Dollar and eventually hit some of the most serious lows from the past few years.

Indeed, just as prices appeared to be improving once again following the dramatic fluctuations of the previous month, severe caution and reticence to offer once again entered the market as many of the available units were given the cold shoulder by end buyers, particularly at levels well into the 500s/LT LTD which were considered nearly unworkable Pakistan seemed to be the only market displaying any signs of bullishness, and they could well be the ones to pick up the pieces from this most recent crisis as Bangladesh is once again set for a quiet spell on the sidelines with the impending closure on October 12th nearing ever closer.

Even the Chinese market suffered considerable falls by as much as USD 15/LT LDT this week as non ferrous and scrap steel prices tumbled (causing many serious concerns over a market that has proved so stable over the course of the year).

It remains to be seen just how damaging this latest set of reversals will have on the industry, but such fluctuations are hardly giving end buyers any comfort to continue the buying at recent levels. The next week may prove telling in ascertaining the direction in which the market may be heading.

For week 38 of 2011, GMS demo rankings for the week are as below:

Market Sentiment
Gen Cargo Prices
Tanker Prices
USD 505/lt ldt
USD 525/lt ldt
USD 500/lt ldt
USD 520/lt ldt
USD 490/lt ldt
USD 440/lt ldt
USD 460/lt ldt

Source: Steel Guru (Sourced from GMS Weekly). 27 September 2011

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