04 December 2013

GMS weekly report on Indian ship breaking industry for WEEK 48 of 2013:

Some greater consistency with the currency has seen confidence flow back into the market as end buyers steadily return to the table to offer on new units once again.

Having traded in and around INR 62 to the US Dollar for the past month or so (there was a brief blip in October when the INR unexpectedly depreciated back towards INR 65 to the US Dollar), the disastrous days of historical lows and almost touching INR 70 to the US Dollar seemed long gone.

There remains a healthy demand for all types and sizes of vessels, with local capacity still prominent, to acquire new units. Bangladesh and Pakistan are likely to provide stiff competition, however, with all sub continent markets ready for a final end of the year push.

Therefore, it was somewhat surprising to see a dearth of sales this week given the improvement in prices. Still, that is sure to change in the weeks ahead as cash buyers look to offload their existing inventories and owners seek to capitalize on a firming market.

Source: steel guru. 3 December 2013

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