11 April 2012

GMS report on INDIAN shipbreaking industry for WEEK 14 of 2012:

A hopeless showing from the Indian sub continent market this week left many cash buyers looking to redirect their existing inventories to competing sub continent markets.

There may have been some improvements at the start of the new financial year early this week, but those were very much kept in check by subsequent days of falls in local steel plate prices amounting to nearly USD 10/LT LDT.

As a result, it was an innocuous week of deals on the sales front with renegotiations rife and some confusion from cash buyers, brokers and owners alike on where levels really are.

The reality is that the volatility has left many end buyers content to bide their time and wait for some sort of stability to return to the market. There is no great rush to commit to new units with the niunber of vessels currently in play (both cash buyer inventory and those delivering from owners themselves).

It may well take another week to assess and watch levels before any sense on price is achieved. For that reason, owners and cash buyers alike have been prepared to temporize any ongoing deals.

The 1985 built Danish reefer (usually rich in non-ferrous) went for a whopping USD 510/LT LDT in the highest price move of the week. The vessel had some 37 T of aluminium on board that added to the top price on show; however that still remained well over S15/ton over the prevailing market.

Source: Steel Guru (Sourced from GMS Weekly). 10 April 2012
http://www.steelguru.com/indian_news/GMS_report_on_Indian_ship_breaking_industry_for_WEEK_14_2012/258308.html

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