02 May 2012

GMS weekly report on Indian shipbreaking industry for WEEK 17 of 2012:

Dipping market sentiment showed few signs of improving this week as arriving deals continued to struggle at the waterfront. A lack of open/willing end-buyers saw delays aplenty and a plethora of renegotiations were reportedly to have taken place on incoming vessels.

The supply of reefer ships too showed few signs of abating as most end buyers continued to turn their noses up at such vessels, or ended up offering on NETT LDT i.e. making deductions for the weight of insulation and/or wooden gratings on board (unlike offering and eating such costs when markets were doing good).

Two Lithuania reefers were concluded at the paltry level of USD 440/LT LDT - the MARSAS (2,302 LDT) and the PLUTO (4,161 LDT) were indeed lucky to find any buyers at all, even at these lower numbers.

Odfjell also wrapped up M/T BOW PEACE at a relatively strong USD 535/LT LDT. The nearly 265 Tons of solid stainless steel onboard is anticipated to have helped achieve the high price, in a market that's been gradually heading down.

After several weeks now of poor performance and subdued buying interest, fewer vessels were scheduled to arrive pre-monsoon. It is doubtful if the buying interest will pick up over the monsoon season - particularly if the rupee continues to struggle against the dollar as it has been and many yards may be eyeing a quieter overall summer as a result.

Source: Steel Guru (Sourced from GMS Weekly). 1 May 2012

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