08 February 2012

GMS weekly report on INDIAN shipbreaking industry for week 05 of 2012:

The pre budget surge in India showed few signs of slowing with another busv week of purchases recorded. Some fiercer competition from both Bangladesh and Pakistan meant local buyers did not have it all, their wav. Yet FOUR market vessels found their wav to Indian end buyers.

Of all of those, perhaps it was the full spares bulker MARIA K (7,6S4 LDT) that raised the most eyebrows - taking home an astonishing USD 545/LT LDT owing to the min 450 T bunkers upon arrival Alang.

UASC too continued their clear out of older tonnage bv selling their THIRD unit in as many weeks at the strongest price yet. The AL MANAKH (12,SSS LDT) achieved a very firm USD 519/LT LDT 'as is' Khor Fakkan with sufficient fuel for the voyage over as the Indian love affair for containers continues.

However, all isn't golden for the local recvcling scene.

Whilst key fundamentals (including the currency) staved in good shape, local steel plate price increases did not mirror the rapidly escalating positions being taken on some of the units bv Cash Buyers. Bidding has essentially jumped USD 10/LT LDT AHEAD of the market in the hope of price rises for pre-budget purchases, which seems like a chase for fool's Gold.

As increasingly higher prices were being demanded from Cash Buyers for tonnage on offer, local recyclers started getting cold feet. Moreover, as the glut of available tonnage made its presence known, Alang recyclers started holding back on firming up.

Consequently, signs of retreat did emerge towards the end of the week. With so many high priced deals concluded with owners, vet unsold into the local markets, the coming weeks mav prove tricky for owners and cash buyers alike.

Source: Steel Guru (Sourced from GMS Weekly). 8 February 2012

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