19 November 2013

GMS weekly report on ship breaking industry for WEEK 46 of 2013:

A long overdue yet (somewhat) unexpected spike in Bangladesh ignited the international ship recycling markets this week. Amidst the ongoing political instability and continuous strikes in addition to surging steel prices that saw mill owners decide to stock up on their inventory, subsequently resulted in ship prices and demand jumping dramatically over the course of the week.

A number of interesting sales were concluded (both market and private) to satisfy this renewed Bangladeshi hunger and it will be interesting to see if this streak maintains itself until the end of the year, or is it merely a short lived surge.

On the larger units, both India and Pakistan were simply unable to compete there was even speculation that of some of the recent VLCC sales (all gas free for man entry only), the hot works cleaning costs would be seriously considered by cash buyers looking to exploit the current surge from Chittagong.

Meanwhile, the Indian market suffered another turbulent week on the currency, just as some sort of stability had started to emerge over the past few months! The rupee spent much of the week trading into the 63s against the US Dollar, having previously settled around Rs. 61 for a good period of time.

The Pakistan Rupee was not faring much better either and fears of the nightmare scenario seen in the third quarter of this year started to resurface, leaving offers on new units virtually nonexistent.

The Chinese market failed to get going as well for another week - several larger LDT units thus escaped their clutches with cash buyer 'as is' prices pocketing owners a tidy premium over local levels in either North / South China.

For week 46 of 2013, GMS demo rankings for the week are as below:

Market Sentiment
USD 400/lt ldt
USD 430/lt ldt
USD 395/lt ldt
USD 425/lt ldt
USD 390/lt ldt
USD 420/lt ldt
USD 330/lt ldt
USD 340/lt ldt

Source: steel guru.  19 November 2013

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