03 January 2012

GMS weekly report on INDIA shipbreaking industry for week 52 of 2011:

Indian buyers would have been grateful for the break that Christinas and New Year holidays have afforded them, especially after the appalling state of the Indian Rupee against the US Dollar, in the fourth quarter of this year. The currency crisis shows few signs of subsiding either, with further losses this week throwing fresh question marks over those who had forecast some sort of emerging stability in the market, with 2012 approaching.

As a result, it has been a quieter than normal end to the year for Indian buyers on the negotiations front. While deliveries and beachings have been taking place, but with great difficulty, end buyers have been looking to minimize their losses whichever way possible. Now more than ever, a dependable cash buyer is needed by owners delivering their vessels into the Indian sub-continent, due to the extreme volatility in the markets and the willingness of many end buyers to create problems at the drop of a hat.

Filially, as Pakistan appears to be picking up some of the slack for the time being and Bangladesh potentially returning to the fold in January, there is some hope that India could return to the scene with its usual gusto once the currency and prices settle somewhat in the first (second quarters of 2012.

Source: Steel Guru (Sourced from GMS Weekly). 3 January 2012

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