03 January 2012

GMS weekly report on CHINESE shipbreaking industry for WEEK 52 of 2011:

After the frantic of year binge on units that had characterized the past week or two, the China market started to cool off a touch with 2012 approaching. Levels of 430 and event 440/LT LDT had started to provide some real competition to the Indian sub continent market, but such bullishness only seems to have been temporary with quotas still to fill licenses to renew for most end buyers.

By the start of the week though, many yards had already filled their empty slots and demand began to ease off with the numbers sliding as a result.

It was therefore somewhat surprising to see two Vietnamese owned bulkers, the Lovely Falcon (12,037) and Harmony Falcon (11,204 LDT) fetch prices in excess of USD 425/LT LDT for a purported delivery into the South of China. With levels sinking below 420 now towards 410/LT LDT on dry, it remains to be seen whether there will be one final flurry on the buying front before buyers’ clock off for Chinese New Year towards the end of January, 2012.

Source: Steel Guru (Sourced from GMS Weekly). 3 January 2012
http://www.steelguru.com/chinese_news/GMS_weekly_report_on_China_ship_breaking_industry_for_WEEK_52/243868.html

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