19 October 2011

GMS weekly report on shipbreaking industry for WEEK 41 of 2011:

The state of the ship recycling sector remained identical and unchanged for the second week in a row as the industry trudged half way into October and into the third week of the month.

Essentially, on the one hand we continue to see a few cash buyers making speculatively (high) priced offers that are nowhere near what the market (end user) has to offer. On the other hand, we continue to observe the jittery performance in the sub continent with numerous deals being renegotiated / failing (some reportedly as much as three times) as vessels continue to be left stranded missing their respective tides and even shifting delivery locations.

The Chinese market, having returned from their holiday, have managed to take home a few vessels as the week ended with southern yards spear-heading the performance of the region.

Lastly, the Bangladesh market officially closed on October 12th with rumors abound that the market is likely to obtain its extension on October 17th 2011 itself.

For week 41 of 2011, GMS demo rankings for the week are as below:

Market Sentiment
Gen Cargo Prices
Tanker Prices
USD 495/lt ldt
USD 525/lt ldt
USD 490/lt ldt
USD 525/lt ldt
USD 485/lt ldt
USD 430/lt ldt
USD 450/lt ldt

Source: Steel Guru (Sourced from GMS Weekly). 19 October 2011

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