13 March 2012

GMS report on INDIAN shipbreaking industry for WEEK 10 of 2012:

While local fundamentals remained bullish, prices showed few signs of bouncing up as the sheer volume of units on the market continued to present over supply issues. The fact is that very few end buyers are willing to commit on new units at firm levels, with the upcoming budget on 15 March just around the comer.

Whilst usually an anti-climactic affair from veer to veer with no dramatic impact on levels, there is a genuine feeling this time around that new taxes may be imposed on incoming vessels and that prices may therefore fall be another USD 10-15/LT LDT.

It is understandable therefore, for end buyers to temporize new purchases (all of which would be arriving after the import date and subject therefore to any new charges levied) until after the 15* March.

A few new sales did register with end buyers willing to take a chance on good-looking market units. The small LPG MAREGAS (3,642 LDT) fetched USD 640/LT LDT (with some 5% nickel content on board).

The 1993 Yugoslavian built container CAPE RACE (13,496 LDT) from German owners was sold either 'as is' Freeport, Bahamas (with some 350 T bunkers ROB) for USD 348/LT LDT or 'as is' Fujairah (with min fuel) for USD 49S/LT LDT in Seller's option.

The most puzzling deal of the week saw the un-fancied EAST GERMAN* built container vessel THERAPS (6,615 LDT) go for USD 513/LT LDT - a price usually reserved for WEST GERMAN (usually much richer in non ferrous) containers.

Lastly, TBS controlled full spare bulker fetched a firm USD 4S5/LT.

Source: Steel Guru (Sourced from GMS Weekly). 13 March 2012
http://www.steelguru.com/indian_news/GMS_report_on_Indian_ship_breaking_industry_for_WEEK_10_of_2012/254386.html

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