14 October 2014

GMS weekly report on Indian ship breaking industry for WEEK 41 of 2014:

A rupee consistently trading above 61 to the USD and the cheap import of Chinese billets has this week seen demand on new units reduced to virtually nothing. Few enquiries are emerging on available units, with many buyers citing the upcoming Diwali holidays and extreme volatility in the market as excuses for not offering.

As a result, it was no surprise to see an empty sales board and the fewest of any arrivals / beachings in the port report this week.

It is true however, that a lack of available and favoured candidates has stalled the market somewhat most of the panamax bulkers and larger LDT units are heading to either Pakistan or Bangladesh and there has been a relative slowing in the supply of favoured Indian type candidates containers, roros and MPPs.

With Diwali holidays set to keep most buyers occupied until the end of October, those with unsold inventory and owners looking to sell their vessels due to consistently poor charter rates, will be hoping that November brings with it a greater optimism.

The fact that a large number of yards (over 50% of them) remain empty, indicates that sentiment should rebound at some point (as long as local fundamentals remain relatively steady) before the end of the year.

Source: steel guru. 14 October 2014

No comments: