22 July 2014

GMS weekly report on Indian ship breaking industry for WEEK 29 of 2014:

A nervous week ensued in India on the back of some drastic falls in the price of local steel plates, and an Indian Rupee that is once again beginning to display signs of worrying depreciation.

Many end buyers full of enthusiasm and exuberance during the previous few weeks in the wake of the positive news on the budget and still reveling in the appointment of the favored Mr Modi as PM became withdrawn, refusing even to offer on units being proposed.

A fall of around INR 1,000 (about $16/Ton) on steel prices and a Rupee that began to trade over INR 60 against the USD, again saw as much as USD 20 per LT LDT wiped off prices over the course of the week.

Those cash buyers who had purchased vessels at the peak of the market last week including the extraordinary price for the CSL RIDE (12,953 LDT) at an astonishing USD 531.50 per LT LDT, began to fear for the worst and must be hoping for some stability in the weeks ahead, to bring buyers back to the table.

The two sales that were done seemed to bely the perilous state of the market at present, as the Polish controlled ORLETA WOWSKIE (13,361 LDT) was sold for a fantastic USD 497 per LT LDT, in the third sale from the group in as many months. The Danish build and soft grain cargoes (meaning the holds are likely to be in excellent condition) were largely responsible for the price on show.

The handysize bulker SAKHALIN (6,622 LDT) likewise received a very firm price of USD 481 per LT LDT in the other sale for the week.

Source: steel guru. 22 July 2014
http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_29/344512.html

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