19 March 2015

GMS weekly report on India ship breaking industry for WEEK 11th 2015:

The bleak outlook on the Indian market following a lackluster budget worsened this week with local steel prices losing almost USD 20 per LT LDT value and the currency depreciating to just over INR 63 against the US Dollar.

Shocked end users therefore removed themselves once again from the buying, stunned yet again by another cruel reversal of fortunes for an industry that has suffered remarkably over the past 6 months or so.

For the time being, it seems as though most of the market tonnage will be diverted to a resurgent Pakistani and Bangladeshi market as India (where capacity remains good) stands to miss out on their share of the tonnage once again.

Despite the negativity, one container was concluded this week the MANUELA (8,018 LDT) at USD 380 per LT LDT ‘as is’ Singapore with 150 T bunkers ROB. It does seem that there will likely be a dwindling supply from this favored sector for Indian buyers, with the majority of dry vessels (particularly panamax and capesize bulkers) being diverted to Gadani and Chittagong shores.

Source: steel guru. 18 Mar 2015

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