17 November 2011

GMS weekly report on INDIAN shipbreaking industry for WEEK 45 of 2011:

Ø    Sentiment struggling
Ø    Chemical tankers sell for big
Ø    Fuel prices affect ‘as is’ deals

Rebound Required:

With sentiment once again struggling for another week, many began to doubt whether the industry would rebound any time soon - particularly with the Bangladeshi market still uncertain on its extension.

Whilst the rupee had made some recent gains against the dollar, growing concerns over falls in the scrap steel price have stagnated the buying for another week. Indeed many end buyers were concerned that the market would fall lower and as such, were not prepared to even offer on new units.

There were however some speculative sales to note for the week as 2 stainless steel chemical tankers from Korean owners were sold at compellingly high prices of USD 726/LTLDT.

The WORLD BRIDGE and SUN BRIDGE {both region 3,890 LDT) with about 250 T solid and 100 T of cladded stainless steel on board that contributed to the significant premium received.

The other deal of note for the week concerned the panamax bulker HARITA FERRO (12,215 LDT), sold for a speculative USD 450/LT LDT 'as is' Singapore with only 200 T IFO ROB. With dry prices seemingly heading towards the 450/LT LDT on delivered vessels and Chittagong not yet open, the deal appeal's to be a big risk with fuel prices rising and large delivery costs to consider.

Source: Hellenic Shipping News (Sourced from GMS Weekly). 16 November 2011

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