18 April 2012

GMS weekly report on INDIAN shipbreaking industry for WEEK 15 of 2012:

A certain stability descended over the market after a turbulent last few weeks, but there was little impact on the price as many end buyers refused to offer aggressively and levels remained stagnant.

A proliferation of reefer vessels was hardly the tonic to encourage end buyers back to the table. Moreover, the lack of bidding-motivation was further dampened thanks in part to the seasonal migration of many workers back to their hometowns ahead of the impending monsoon season.

This has left many yards with a chronic labor shortage at one of the busiest times of the year with well over 50 NEW ships per month arriving at anchorage for recycling.

Furthermore, with a flood of container vessels expected to come, the supply of vessels is not expected to let up any time soon and it may well be that we see a number more unsold units that are seeking buyers.

On the sales front, the Chinese owned converted bulker (from suezmax tanker) VISTA (17,385 LDT) went for USD 465/LT LDT whilst the Marmaras handymax bulker fetched an extremely firm USD 482/LT LDT for delivery WC India - Pakistan range.

Source: Steel Guru (Sourced from GMS Weekly). 18 April 2012

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