31 August 2012

GMS report on Indian shipbreaking industry for WEEK 34 of 2012:

Some opportunistic moves by keen Sellers saw a huge number of deals concluded for the week into the improving Indian market.

Indeed, no less than EIGHT market vessels were concluded (3 containers and 5 bulkers) as the price was seemingly right for man}' owners to offload their older tonnage.

The price varied drastically from unit to unit though with some perhaps overly optimistic cash buyers hedging their bets ahead of the market. Evidence of such actions are the hugely speculative purchases of the NORTHERN" DIGNITY (14,435 LDT) and NORTHERN'VITALITY (11,106 LDT) for USD 455/LT LDT 'as is' Singapore - with 450 T bunkers and USD 375/LT LDT 'as is' North Germany respectively with min bunkers.

By contrast, a private steel prop bulker of 7,953 LDT achieved a comparatively poor USD 403/LT LDT - showing mat having a keen end buyer in place is at least half the battle in securing a decent price.

Drumming up interest on vessels with poorer specs with so much supply in the market is often difficult with end buyers now able to call the shots on price and type of unit required.

Source: Steel Guru. 28 August 2012
http://www.steelguru.com/indian_news/GMS_report_on_Indian_ship_breaking_industry_for_WEEK_34_2012/280563.html

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