09 September 2014

GMS weekly report on Indian ship breaking industry for WEEK 36 of 2014:

Whilst there was no competing with their Pakistani counterparts, Indian buyers had to remain hot on their heels in order to have a chance at securing any market tonnage of note.

Yet, inward clearance costs remain more expensive, gas freeing far more stringent (with tankers required to be gas free for hot works as opposed to gas free for man entry only in Pakistan) and there are no tides in Gadani to contend with (therefore less waiting time).

So the majority of vessels are still heading to their closest neighbors and competitors. Where Indian buyers tend to triumph is for green vessels, along with containers, RoRos and passenger vessels (the draft is usually too high for Gadani buyers to consider and the beachings are therefore unsatisfactory occurring too far from shore for cutting to commence promptly).

It was therefore no surprise therefore to see the RoRo / general cargo unit ATLANTIK NYALA (9,210 LDT) committed for a decent price region USD 500/LT LDT to Alang buyers this week.

India will therefore have to keep up the pace, despite constantly fluctuating fundamentals, to stay in with a chance of snaring vessels from a rampant Pakistan and an improving Bangladesh.

Source: steel guru. 9 September 2014

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