The return of some positivity in the Indian market (in particular) saw a number of high profile and high LDT vessels concluded for the week. The only market to miss out on a share of the tonnage was tlie underwhelming Bangladesh market once again.
An impressive appreciation in tlie Indian Rupee for a second consecutive week raised spirits in Alaxig and saw a number of rather speculative positions being taken by cash buyers as a result.
Certainly, the signs are that the worst is over in tlie sub-continent markets and the traditional fourth quarter surge in prices can finally take hold. Tlie shocking currency depreciation in both India and Pakistan had taken everyone by surprise, but now that the Rupee appears to be settling once again, die demand to acquire new units is starting to emerge in almost all markets.
The (mainly downward) fluctuation of local steel plate prices had caused some concern in tlie Indian market yet the constant volatility has almost become a normal part of life there and something that end buyers merely have come to accept.
Meanwhile, tlie rampant appetite on show in China, for vet another week, tempted mostly domestic owners to sell larger container, suezmax and VLCC units direct to local yards.
Finally, CMA CGM controlled RoRo ROSA DELMAS (14,222 LDT) has been reportedly sold into Turkey for a strong USD 327/LT LDT. News of reported delays in local deliveries has come forth as a backlog of vessels has been building up in Aliaga following tlie recent glut of deals concluded there (with Indian markets down recently), and many end buyers are trying to renegotiate agreed prices following tlie latest reversals on the Turkish Lira.
The capacity across all recycling destinations remains good and most end buyers seem content to dip into the market, to stock their yards once again, following an extended period on the sidelines.
Country Market GEN CARGO Prices TANKER Prices
India Bullish USD 360/lt ldt USD 390/lt ldt
Pakistan Bullish USD 360/lt ldt USD 385/lt ldt
Bangladesh Weak USD 355/lt ldt USD 380/lt ldt
China Bullish USD 350/lt ldt USD 365/lt ldt
Source: Steel Guru. 17 September 2013http://www.steelguru.com/international_news/GMS_weekly_report_on_ship_breaking_industry_for_WEEK_37/325066.html