09 October 2013

GMS weekly report on ship breaking industry for WEEK 40 of 2013:

Some extraordinary market sales this week gave the market a new complexion going into week 40 of the year. For the most part, it seems as though (certain) cash buyers are still willing to speculate on an inevitable (and spectacular) market turnaround.

Whilst there have certainly been some improvements in particular in India of late it would be irresponsible to suggest that tankers and containers are trading locally in the mid 400s/LT LDT with bulkers at USD 420 to USD 425/LT LDT range. The reality in fact is that prices on the ground remain at least USD 25/LT LDT below.

The sales from this week do not seem to connect to die local activity on the ground - and unless one end buyer is offering way ahead of the pack (a rare scenario indeed), then this has to be put down to the respective cash buyer gambling on a forward moving market.

Notwithstanding, India lias continued its good form of late with another positive week on the currency and local steel plate prices. A greater demand is emerging for all types of tonnage as the confidence starts to flow back into a market that was decimated by the collapsing currency during the third quarter of the year.

The recovery on steel plate prices in Bangladesh too lias seen prices for ships climb -although not high enough to start competing with India or satisfying cash buyer expectations on their existing inventories.

Pakistan was left marooned some way behind both of its sub-continent rivals, with the Pakistani Rupee still causing some concern locally. For that reason, Gadani buyers have missed much of the recent tonnage and will need to rethink their price ideas, if they are to get back in on the action.

China remained off for their National October holidavs this week, resulting in little meaningful activity there, whilst Turkey continued their recent revival with offers ranging from low to mid 300s/LT LDT seen on a variety of tonnage.

For week 40 of 2013, GMS demo rankings for the week are as below:

USD 395/lt ldt
USD 425/lt ldt
USD 390/lt ldt
USD 420/lt ldt
USD 385/lt ldt
USD 415/lt ldt
USD 350/lt ldt
USD 365/lt ldt

Source: steel guru. 8 October 2013

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