05 June 2014

GMS weekly report on Indian ship breaking industry for WEEK 22 of 2014:

As the overall positive momentum (post-election) continues in India, week 22 saw cash buyers continuing to bet on a sustained market buoyancy and upward trend, offering levels well above break even, hoping that by the time the vessels arrive Alang anchorage, prices would have risen sufficiently enough to where today’s seemingly unattainable prices become tomorrow’s reality.

As such, industry players witnessed yet another active week from India as Alang buyers’ took home all of the market (and private) tonnages being negotiated.

Turkish owned 7,142 LDT general cargo vessel fetched an impressive USD 496 per LT. The right size (meaning large number of local buyers interested to offer) and decent trading history played their parts in achieving the level on show.

Additionally, Chinese owned 7,370 LDT general cargo vessel YUAN HENG with decent cargos was committed at USD 485 per LT NETT to owners + inward clearance on Buyers account, a breakeven price approaching USD 490 per LT.

As prices continue to surge ahead of competing neighbors and monsoon clouds loom on the horizon, it remains to be seen just how much longer local sentiment remains this eager and local buyers remain motivated to keep prices elevated well above the competition.

Source: steel guru. 5 June 2014

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