04 November 2014

GMS weekly report on Indian ship breaking industry for WEEK 44 of 2014:

For those cash buyers with unsold vessels at the waterfront, it has been, quite frankly, a horrific week in terms of numbers offered by local recyclers. These levels have in no way represented the reality on the ground and have been an opportunistic attempt to secure a serious bargain (or two).

Several sales (mostly distressed assets in poor condition from cash buyer ‘as is’ inventories) saw one or two bulkers fixed around the USD 440/LT LDT mark. The days of dry units at USD 500 per LT LDT (or excess) now seem long gone.

However, there is no suggestion that prices should be so low as fundamentals remain steady with the Rupee trading slightly excess INR 61 against the US Dollar and local steel plate prices shaky as usual, but still holding ground.

It was therefore, of little therefore to see no market sales recorded and it will be a desolate period of time ahead if quoted levels become a reality. Yard capacity stands at over 50% and until end buyers start talking sensible and realistic levels again, buyers will stay starved of tonnage.

Source: steel guru. 4 November 2014  

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