16 October 2013

GMS weekly report on Indian ship breaking industry for WEEK 41 of 2013:

The stunning performance of the past few weeks persisted in India with some truly stellar numbers seen and some eye opening speculation undertaken.

Top of the bill was undoubtedly the sale of the Danaos owned container vessel LOTUS (15,339 LDT) which fetched an incredible USD 453/LT LDT from one overly enthusiastic cash buyer. This certainly did not seem to reflect the reality of prices on the day in India and may well be resting on a forward position. Nonetheless, the powerful generators, decent size (LDT), 46 Tons bronze propeller and good ownership are likely to ensure the vessel receives its deserved premium.

In other sales, TBS controlled CHESAPEAK BELLE (7,371 LDT) fetched a very firm USD 420/LT LDT (with 150 T bunkers upon arrival WC India), whilst two smaller Turkish owned bulkers, the HUZUR 1 (5,291 LDT) and MEVLANA (4,812 LDT) fetched a decent USD 415/LT LDT. Finally, the Syrian owned ABM PIONEER (6,862 LDT) achieved another USD 415/LT LDT.

It seems as though two separate markets have since emerged - the local market and that of the cash buyers. No standard bulkers have (recently) been sold above USD 400/LT LDT in India and yet the prices offered by cash buyers suggest a different story.

Either certain players are in the know of a swift market upswing or there is set to be some pain at the shorefront upon arrival ... (as in the case of a bulker at Alang, which was purchased well above the market and is currently being renegotiated upon arrival).

The currency gained further marginal ground in an altogether encouraging week, trading into the low INR 62s and INR 61s to die USD whilst steel prices remained stable.

Source: GMS Weekly. 15 October 2013

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