11 September 2013

GMS weekly report on shipbreaking industry for WEEK 36 of 2013:

With ALL major sales conducted into China this week, Indian sub-continent markets were left marginalized once again, and it is difficult to envisage cash buyers or owners being tempted to deliver their vessels to Pakistan, India, or Bangladesh, whilst prices remain so low.

Something will have to give in order to shift vessels from China or Turkey over to the subcontinent (unless of course vessels are discharging in the area). This somewhat surprising fourth quarter decline has had the most damaging repercussions in India (with many end buyers fighting for their very livelihoods after the hugely dramatic currency depreciation), and for the most part, both Pakistan and Bangladesh markets have followed suit.

The situation in the sub-continent is therefore far from encouraging at present, even though many are pointing towards what may be the first shoots of recovery emerging this week in India, with the appointment of a new RBI (Reserve Bank of India) governor that may help stabilize the currency.

Even if a certain demand is emerging once again in Pakistan and India, prices are still far too low to hook many sales, or to tempt voyages from stronger recycling destinations in the Mediterranean or die Far East. Many owners may look to pass surveys or fix further voyages before selling at current rates (especially as charter rates improve slightly in certain sectors).

Bangladesh looks set to be largely absent from proceedings for the immediate future, sandwiched between a resurgent China and Pakistan / Indian markets that are prepared to buy vessels in the area at prices ahead of their Chittagong competitors. Adding to the trouble in Bangladesh is the political situation that remains volatile whilst steel prices have come off at an alarming rate of late to force many buyers out of the market for the time being.

For week 36 of 2013, GMS demo rankings for the week are as below:

Market Sentiment
TANKER Prices 
USD 360/lt ldt
USD 390/lt ldt
USD 360/lt ldt
USD 385/lt ldt
USD 355/lt ldt
USD 380/lt ldt
USD 350/lt ldt
USD 365/lt ldt

Source: Steel Guru. 11 September 2013

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