14 May 2014

GMS weekly report on Indian ship breaking industry for WEEK 19 of 2014:

The recent hot streak on containers in India continued for yet another week with some more sales taking place at hefty numbers. The pick of these saw the Danaos controlled MESSOLOGI (23,740 LDT) committed for a very firm USD 515 per LT LDT basis a prompt.

WC India delivery, the fourth sale from the group this year. The good Danish build, heavy 72-Ton bronze propeller and likely excellent condition of the vessel saw the decent premium achieved as local buyers once again displayed their aggression on decent sized container units.


Meanwhile, the currency continues to impress and even spent part of the week trading below INR 60 against the US Dollar something that gave end buyers sufficient confidence to offer ever increasing numbers on available units.

Whilst supply also remains steady, the scrap steel prices have fluctuated between the usual range of INR 100 to INR 200 per LDT up and down (USD 2 to 4 per LDT) on a daily basis. With monsoon season approaching in June and election results set to be announced soon, it will be interesting to see if current levels persist going into the summer.

Many analysts are suggesting that just one piece of negative news such as anything but the highly anticipated win for Mr Modi in the elections could turn sentiment and subsequently prices spiraling downwards once again.

Source: Steel guru. 14 May 2014

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