16 July 2014

GMS weekly report on Indian ship breaking industry for WEEK 28 of 2014:

The encouraging news about Mr. Modi’s first Indian budget as PM, saw a wave of optimism engulf the industry with prices subsequently pushing on between USD 10 to USD 15 per LT LDT. Certain cash buyers also saw it fit to speculate on certain vessels (beyond all apparent reason) with the incredible deal on the CSL RIDE, surely one to come under scrutiny.

It was indeed a bumper week of sales into India with a number of vessels concluded at improving rates. The self-discharging bulker SILICA II (6,060 LDT) was committed for a decent USD 473 per LT LDT, whilst NASCO of China sold another of their older tweens for USD 473 per LT LDT + inward clearance for buyers.

However, the show-stopping sales concerned the THERESA ANTARCTIC (14,910 LDT), which was reportedly concluded late last week, at a strong USD 510 per LT LDT whilst another cash buyer surely chose to overextend themselves on the Croatian built container vessel CSL RIDE (12,953 LDT) for an astonishing USD 531.5 per LT LDT. The decent age, country of build, and significant bunker figs expected to be on board, all contributed to the decent price on show.

Notiwthstanding, this is certainly not reflective of the overall reality of levels at present in India, despite the optimism on the ground. The Indian Rupee spent much of the week trading just below Rs. 60 against the U.S. Dollar and despite the usual fluctuations on local steel plate prices, the overall fundamentals promised plenty of optimism in both demand and pricing ahead.

Source: steel guru. 15 July 2014

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