27 May 2014

GMS weekly report on Indian ship breaking industry for WEEK 21 of 2014:

Another stunning week saw the Indian Rupee trading well below INR 60 against the US Dollar (mostly in and around the mid to low 58s) and gave some much needed confidence to many end buyers to return to the bidding tables once again, in an attempt to fill plots that have largely remained vacant over the recent past.

At the onset, the landslide election victory for Mr Modi has been an incredible source of encouragement that darker days, which started in the Q4 of 2012 with the unprecedented, historic and tumultuous depreciation of the Indian Rupee, were finally behind them.

Indeed, even tankers that may have been considered certainties for the Pakistan market due to cheaper gas free status are now being made gas free for hot works at added cost and brought over to the undisputed market of the moment, to cash in on the premiums on offer.

Two such cases in point will likely see the favored Ukrainian built tanker VALDIVIA (16,248 LDT) brought across from Chile after fetching a huge USD 402/LT LDT (and with significant delivery expenses, particularly on bunkers all the way from South America).

Source: steel guru. 27 May 2013

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