24 January 2012

GMS weekly report on INDIAN shipbreaking industry for WEEK 03 of 2012:

India's recent bullishness showed few signs of cooling for the week as a number of deals (both private and market) were concluded at increasingly firm (and seemingly speculative) numbers. With levels on tankers approaching and even exceeding the magic 500/LT LDT once again (as long as they are able to deliver gas free for hot works) and bulkers some USD 25/LT LDT behind, the time may be right for owners who have been considering selling their older units, to cash in.

Interestingly it seems that containers have been taking home the prize money in recent weeks - even ahead of tankers and that is a trend that may well continue over the course of the year.

The Chartworld controlled Capesize bulker SETSUYO STAR (24,077 LDT) fetched USD 470/LT LDT in one of the most eve catching deals of the week and rumors persisted that two Panamax bulkers from Greek owners had fetched a price well in excess of that. Additionally, Spanish controlled M/V CASTILLO DE SOUTOMAIOR was concluded by cash buyers who jumped about USD 10 per tonne over the market, in order to conclude the vessel at a whopping USD 500 per tonne of course the 250 to 300 tonnes of fuel did have a small part to play in achieving the strong level.

Finally, old sales of German owned M/V PALERMO and M/V BUXMASTER both come to light as the vessel's arrive Alang anchorage for beaching. Most interesting is the sale of the M/V BUXMASTER, as the vessel was sold about 2 weeks ago as is Nava Sheva (Mumbai), at a price of about USD 512.50/LT LDT. At a time when containers on a delivered basis were fetching region USD 495 per tonne, it appeared the vessel was headed for further trading. Notwithstanding the speculative purchase, even as the markets firmed up over the last couple of weeks, it remains to be seen if the Cash Buvers did walk away from this deal in the black.

As the budget approaches once again in Feb to March, prices mad be expected to remain firm for some weeks vet as long as the currency is able to achieve the same sort of stability is has shown in the last few weeks.

Source: Steel Guru (Sourced from GMS Weekly). 24 January 2011

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