27 November 2014

GMS weekly report on Indian ship breaking industry for WEEK 47 of 2014:

There were small glimmers of hope in the Indian market this week, as steel prices began to improve and more realistic numbers appeared to be forthcoming from end buyers once again.

Previous weeks had seen morale take a battering and renegotiations have now become desperate and frequent, with often the smallest of inaccuracies in vessels details leading to major squabbles at the waterfront.

The popularity of Mr. Modi however shows no signs of waning as he returned from a raucous reception in Australia and there are very real hopes that domestic industries will be protected against the import of this cheap Chinese steel with increased taxes.

Meanwhile, a number of vessels from existing cash buyer inventories were finally committed albeit at disappointingly lower levels. But unless owners were subject to the type of frivolous renegotiations not uncommon of late, significant hits have been taken by the rare few who remained true to their word and performed according to their prevailing MOAs.

There were no new market sales to report, yet it is understood this week that the 6 x older LNGs mentioned for a possible recycling sale earlier in the month during the auction process, have been committed to further trading interests this past week.

Source: steel guru. 26 November 2014

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