Prices of recycled
tonnage continue to face downward pressure in India as the Indian currency and
steel prices weakened again last week.
Prices of bulkers are
hovering at USD350/ldt in India and USD365/ldt in Pakistan, largely unchanged
from the previous week.
Dubai-based cash buyer
Global Marketing Systems noted, "It has been an entirely underwhelming
post-budget period in an Indian market that has witnessed constant falls over
the past six months or so, with almost 30% being wiped off market prices there.
"Much will rest on
the direction of the Chinese exports and whether steel billets will continue to
invade subcontinent markets, significantly undercutting inventories already on
end-user plots."
The influx of cheap
Chinese steel is competing with demand for scrap steel and ship breakers have
been lobbying the Indian government to impose import taxes on Chinese steel.
The bleak outlook on the
Indian market following a lacklustre budget worsened this week with local steel
prices losing almost USD20/ldt value and the currency depreciating to just over
INR63 against the US dollar.
This has deterred ship
recyclers from buying ships that are not short in supply.
Container ships,
however, continue to be in demand due to the suitable draughts in India. Supply
of box ships has also been drying up in Indian yards and the latter is looking
to restock on this vessel type.
Reederei Hermann Wulff's
1993-built 1,661-teu Manuela was sold for USD3.05 million or USD380/ldt with
150 tonnes of leftover bunkers.
Pakistani buyers also
purchased two bulkers that had significant amount of leftover bunkers.
SNP Shipping Services'
1992-built Panamax bulker The Watchful, fetched USD3.86 million or USD400/ldt
as it had 750 tonnes of leftover bunkers, while 1985-built Handysize bulker
Shehab Almuhiedine, controlled by Eastern Star Shipping, fetched USD2.16
million or a decent USD380/ldt.
Source: his maritime 360.
17 March 2015
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