27 March 2014

GMS weekly report on Indian ship breaking industry for WEEK 12 of 2014:

The container standoff between cash buyers and end buyers continued for another week something that saw several panamax sized units sold to Pakistan buyers in an unprecedented move.

Time will tell whether Gadani buyers come to value containers as highly as tankers in India and Bangladesh, despite the draft issues they have long complained about.

Most cash buyers who acquired containers at huge levels in the past month or so look set to lose money on these speculative purchases, as the local market has simply not been able to support the levels being asked for.

Overall, the currency has steadied into the INR 61 range against the US Dollar and steel prices, despite frequent daily fluctuations, are not causing too much concern at present.

Indeed, demand remains healthy locally particularly for smaller LDT units between 5 and 12,000 LDT (due to lower cutting time required and a generally larger number of yards with LC limits available to negotiate tonnages in this size range).

Two units of interest were sold this week the Naftomar controlled smaller LPG GAZ SYMPHONY (4,756 LDT) fetched an impressive USD 468 per LT LDT ‘as is’ Fujairah with 500 T bunkers remaining on board and the Nanjing Kingship tween, KING HERO (7,116 LDT) achieved USD 455 per LT LDT for a forward end May delivery.

Source: steel guru. 25 March 2014

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